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Problem 6-10AB Gross profit method LO P4 Wayward Company wants to prepare interim financial statements for the first quarter. The company wishes to avoid making
Problem 6-10AB Gross profit method LO P4
Wayward Company wants to prepare interim financial statements for the first quarter. The company wishes to avoid making a physical count of inventory. Wayward's gross profit rate averages 30%. The following information for the first quarter is available from its records.
Beginning inventory, January 1 | $ | 330,260 |
Cost of goods purchased | 969,050 | |
Sales | 1,221,150 | |
Sales returns | 9,750 | |
Required: Use the gross profit method to estimate the company's first quarter ending inventory.
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