This exercise reviews the relationships and computations involved with methods of estimating inventory.
Information relating to five different situations is as follows:
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1. |
Net sales |
$132,000 |
|
|
Gross profit |
52,800 |
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Gross profit rate |
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2. |
Net sales |
$80,000 |
|
Cost of goods sold |
52,000 |
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|
Net income |
12,000 |
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Gross profit rate |
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3. |
Cost of goods available for sale |
$74,000 |
|
Estimated cost of goods sold |
60.000 |
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Estimated ending inventory at cost |
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4. |
Beginning inventory at cost |
$20,000 |
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Purchases at cost |
112,000 |
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Purchases returns at cost |
4,000 |
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|
Net sales |
200,000 |
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Gross profit rate |
45% |
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Estimated cost of goods sold |
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Estimated ending inventory at cost |
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5. |
Cost of goods available for sale |
$52,000 |
|
selling prices of goods for sale |
18,000 |
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Cost to retail ratio |
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6. |
Beginning inventory at cost |
$12,000 |
|
beginning inventory at retail |
2U,UUU |
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Purchases at cost |
62,100 |
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Purchases at retail |
94,000 |
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Ending inventory at retail |
17,200 |
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Operating expenses |
38,000 |
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Cost to retail ratio |
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Estimated ending inventory at cost |
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Instructions
Fill in the missing figure(s) for each of the independent situations above.