11) What is the method used to estimate the cost of ending inventory?
12) The __________ estimates inventory by using the format for cost of goods sold.
13) Aqua Corporation has given you the following inventory figures:
Beginning Inventory
|
$534,274
|
Freight/Shipping
|
$11,382
|
Purchases of Inventory
|
$1,356,493
|
Purchase Returns
|
$7,302
|
Ending Inventory
|
?
|
Net Sales
|
$945,358
|
Historical Gross Profit Percentage
|
38%
|
|
|
Using the gross profit method, calculate the estimated ending inventory to the nearest dollar. Show all calculations.
14) Beta Corporation has given you the following inventory figures:
Beginning Inventory
|
$289,405
|
Freight/Shipping
|
$5,385
|
Purchases of Inventory
|
$347,465
|
Purchase Returns
|
$8,382
|
Ending Inventory
|
?
|
Net Sales
|
$467,311
|
Historical Gross Profit Percentage
|
44%
|
|
|
Using the gross profit method, calculate the estimated ending inventory to the nearest dollar. Show all calculations.
15) Cobra Corporation has given you the following inventory figures:
Beginning Inventory
|
$175,699
|
Freight/Shipping
|
$3,073
|
Purchases of Inventory
|
$264,834
|
Purchase Returns
|
$5,802
|
Ending Inventory
|
?
|
Net Sales
|
$393,245
|
Historical Gross Profit Percentage
|
57%
|
|
|
Using the gross profit method, calculate the estimated ending inventory to the nearest dollar. Show all calculations.
16) Armedio Enterprises lost its entire inventory in a hurricane that occurred on March 31, 2014.
Over the past five years, gross profit has averaged 30% of net sales. The company’s records reveal the following data for the month of March:
Beginning Inventory $42,600, Net Purchases $259,900, Sales $430,500, and
Sales Returns and Allowances $12,300
Estimate the inventory for the end of March using the gross profit method.