Question
PR- 6-7 Retail method; gross profit method Selected data on inventory, purchases, and sales for Celebrity Tan Co. and Ranchworks Co. are as follows: Line
PR- 6-7
Retail method; gross profit method
Selected data on inventory, purchases, and sales for Celebrity Tan Co. and Ranchworks Co. are as follows:
Line Item Description | Cost | Retail |
---|---|---|
Celebrity Tan Co. | ||
Inventory, August 1 | $300,000 | $575,000 |
Transactions during August: | ||
Purchases (net) | 2,021,900 | 3,170,000 |
Sales | 3,250,000 | |
Ranchworks Co. | ||
Inventory, March 1 | $880,000 | |
Transactions during March through November: | ||
Purchases (net) | 9,500,000 | |
Sales | 15,800,000 | |
Estimated gross profit rate | 38% |
Required:
Question Content Area
1. Determine the estimated cost of the inventory of Celebrity Tan Co. on August 31 by the retail method, presenting details of the computations. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
Line Item Description | Ratio | Cost | Retail |
---|---|---|---|
Inventory, at estimated costInventory, August 1Inventory, August 31, at retailMerchandise available for saleSalesSales returns and allowances | $- Select - | $- Select - | |
Inventory, August 31, at estimated costInventory, August 31, at retailMerchandise available for saleNet purchasesSalesSales returns and allowances | - Select - | - Select - | |
Inventory, August 31, at estimated costInventory, August 1Inventory, August 31, at retailMerchandise available for saleSalesSales returns and allowances | $- Select - | $- Select - | |
Ratio of cost to retail price: | Ratio of cost to retail price:% | ||
Inventory, August 31, at estimated costInventory, August 1Inventory, August 31, at retailMerchandise available for saleNet purchasesSales | - Select - | ||
Inventory, August 1Inventory, August 31, at retailMerchandise available for saleNet purchasesSalesSales returns and allowances | $- Select - | ||
Inventory, August 31, at estimated costInventory, August 1Merchandise available for saleNet purchasesSalesSales returns and allowances | $- Select - | ||
Question Content Area
2a. Estimate the cost of the inventory of Ranchworks Co. on November 30 by the gross profit method, presenting details of the computations. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
Line Item Description | Cost | Cost |
---|---|---|
Estimated cost of goods soldEstimated inventory, November 30Inventory, March 1Merchandise available for saleSalesSales returns and allowances | $ | |
Estimated cost of goods soldEstimated gross profitEstimated inventory, November 30Merchandise available for saleNet purchasesSalesSales returns and allowances | ||
Estimated cost of goods soldEstimated gross profitEstimated inventory, November 30Merchandise available for saleInventory, March 1SalesSales returns and allowances | $- Select - | |
Estimated cost of goods soldEstimated gross profitEstimated inventory, November 30Inventory, March 1Merchandise available for saleNet purchasesSales | $- Select - | |
Estimated gross profitEstimated inventory, November 30Inventory, March 1Merchandise available for saleNet purchasesSalesSales returns and allowances | - Select - | |
Estimated cost of goods soldEstimated gross profitInventory, March 1Merchandise available for saleNet purchasesSalesSales returns and allowances | - Select - | |
Estimated gross profitEstimated inventory, November 30Inventory, March 1Merchandise available for saleNet purchasesSalesSales returns and allowances | $- Select - | |
Question Content Area
2b. Assume that Ranchworks Co. took a physical inventory on November 30 and discovered that $369,750 of inventory was on hand. What was the estimated loss of inventory due to theft or damage during March through November? $fill in the blank 6dcebbf87f88055_1
Da. Fstimate the cost of the inventorv of Ranchworks Co. on November 30 by Da. Fstimate the cost of the inventorv of Ranchworks Co. on November 30 by
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