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Whispering Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May. Inventory, May
Whispering Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May.
Inventory, May 1 | $ 171,100 | |
Purchases (gross) | 686,700 | |
Freight-in | 28,700 | |
Sales revenue | 1,067,400 | |
Sales returns | 63,300 | |
Purchase discounts | 11,300 |
Compute the estimated inventory at May 31, assuming that the gross profit is 30% of net sales.
The estimated inventory at May 31is ______ Compute the estimated inventory at May 31, assuming that the gross profit is 30% of cost. (Round percentage of sales to 2 decimal places, e.g. 78.74% and final answer to 0 decimal places, e.g. 6,225.)
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