Help! Mark Price Company uses the gross profit method to estimate inventory for

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Mark Price Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May. Compute the estimated inventory at May 31, assuming that the gross profit is 30% of sales. The estimated inventory at May 31 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.) The estimated inventory at May 31

Explanation / Answer

Answer a

Answer b

# => [30 /( 100+ 30) ] *100 => 23% of sales

Particulars AMOUNT ($) Inventory at may 1 160500 Purchases (gross) 647200 Purchase Discounts (13060) Freight In 30900 Goods Availble at Cost 825540 Sales at (Selling Price) 1040300 Sales returns at (Selling Price) 73300 Net Sales at Selling Price 967000 Less: Gross Profit (30% * 967000) 290100 Sales at COST 676900 INVENTORY AT 31 MAY 148640

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