Wayman Company wants to prepare interim financial statements for the first quarter. The company wishes to avoid making a physical count of inventory. Wayman’s gross profit rate averages 30%. The following information for the first quarter is available from its records:
|
January 1 beginning inventory |
325,950 |
|
Cost of goods purchased |
942,525 |
|
Sales |
1,201,750 |
|
Sales returns |
9,780 |
Required
Use the gross profit method to estimate the company’s first-quarter ending inventory.