Question
Sheffield Company Limited uses the gross profit method to estimate inventory for monthly reports. Information follows for the month of May: Inventory, May 1 $
Sheffield Company Limited uses the gross profit method to estimate inventory for monthly reports. Information follows for the month of May:
| Inventory, May 1 | $ | 361,000 | ||
| Purchases | 716,000 | |||
| Freightin | 52,000 | |||
| Sales | 1,350,000 | |||
| Sales returns | 75,000 | |||
| Purchase discounts | 11,100 |
Calculate the estimated inventory at May 31, assuming that the markup on cost is 25%.
| Estimated inventory, May 31 |
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Financial Accounting For Management
Authors: Paresh Shah
2nd Edition
0198077033, 978-0198077039
