Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Keen Company's accounting records indicated the following information: Inventory, 1/1/14 $ 1,200,000 Purchases during 2014 6,000,000 Sales during 2014 7,600,000 A physical inventory taken on
Keen Company's accounting records indicated the following information:
Inventory, 1/1/14 | $ 1,200,000 |
Purchases during 2014 | 6,000,000 |
Sales during 2014 | 7,600,000 |
A physical inventory taken on December 31, 2014, resulted in an ending inventory of $1,400,000. Keen's gross profit on sales has remained constant at 25% in recent years. Keen suspects some inventory may have been taken by a new employee. At December 31, 2014, what is the estimated cost of missing inventory?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started