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On January 1, JKR Shop had $490,000 of beginning inventory at cost. In the first quarter of the year, it purchased $1,630,000 of merchandise returned
On January 1, JKR Shop had $490,000 of beginning inventory at cost. In the first quarter of the year, it purchased $1,630,000 of merchandise returned $23,500, and paid freight charges of $38,000 on purchased merchandise, terms FOB shipping point. The company's gross pront averages 30%, and the store had $2,040,000 of net sales (at retail) in the first quarter of the year Use the gross profit method to estimate its cost of inventory at the end of the first quarter. $ 490.000 Beginning invertory, January 1 Net cost of goods purchased Sales Estimated cost of goods sold Estimated March 31 Inventory
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