Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Retail method; gross profit method Selected data on inventory, purchases, and sales for Celebrity Tan Co and Ranchworks Co. are as follows: Cost Retail $300,000

image text in transcribed
image text in transcribed
image text in transcribed
Retail method; gross profit method Selected data on inventory, purchases, and sales for Celebrity Tan Co and Ranchworks Co. are as follows: Cost Retail $300,000 $575,000 Celebrity Tan Co. Inventory, August 1 Transactions during August: Purchases (net) Sales 2,021,900 3,170,000 3,250,000 $880,000 Ranchworks Co. Inventory, March 1 Transactions during March through November: Purchases (net) Sales Estimated gross profit rate 9,500,000 15,800,000 38% Required: 1. Determine the estimated cost of the inventory of Celebrity Ton 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 ign Celebrity Tan Co. Estimated cost of Inventory August 31 Retail Cost 1. Determine the estimated cost of the inventory of Celebrity Tan Coon 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 Celebrity Tan Co. Estimated cost of Inventory August 31 Cost Retail Ratio of cost to retail price: DI IND 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 Ranchworks Co. Estimated Cost of Inventory November 30 Cost DOO . Ratio of cost to retail prices 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 Ranchworks Co. Estimated cost of Inventory November 30 Cost DOO Il 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 aatimated loss of inventory due to theft or damage during March through November

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

How To Audit The Process Based QMS

Authors: Arter, Dennis R., Cianfrani, Charles A, And West, John E., 'Jack'

2nd Edition

0873898443, 978-0873898447

More Books

Students also viewed these Accounting questions

Question

Describe the fundamental models of e-business.

Answered: 1 week ago

Question

Why We Listen?

Answered: 1 week ago