leytus INTERMEDIATE ACCOUNTING I d, Study & Practice Gradebook ORION Downloadabl
ID: 2528920 • Letter: L
Question
leytus INTERMEDIATE ACCOUNTING I d, Study & Practice Gradebook ORION Downloadable eTextbook Open Assignment HMY INSTRUCTOR FALL SCREEN PUNTER VER Exercise 9-14 (Part Level Submission) Bonita 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 Purchases (gross) Freight-in Sales revenue Sales returns Purchase discounts omework ise 9.3 0-2 s 145,400 658,600 9.7 9-9 2-11 9-14 (Pa 990,600 76,300 11,900 9-20 (Pan ? (a) ore Compute the estimated inventory at May 31, assuming th at the gross profit is 35% of net sales The estimated inventory at May 31 Click if you would like to Show Work for this question: Open Show Wosk sults hy ective s Attempts: 0 of 2 used SAVE FOR LATER The parts of this queation must be completed in order. This part wil be available when you complete the part above,Explanation / Answer
a) Compute the estimated inventory at May 31, assuming the gross profit is 35% percent of sales
“Estimated inventory at May 31 = $ 2,25,505 “
WORKINGS
3Net Sales = Sales - Sales Return = 9,90,600 – 76,300 = 9,14,300
Net Purchases = Purchases - Purchase discounts = 6,58,600 – 11,900 = 6,46,700
Gross Profit = 35% on Net Sales = 35% on 9,14,300 = 3,20,005
Cost of Goods sold = Net sales - Gross profit = 9,14,300 – 3,,20,005 = 5,94,295
Cost of goods sold = Opening Stock + Net Purchase + Freight - Closing Stock
5,94,295 = 1,45,400 + 6,46,700 + 27,700 - Closing stock
Closing Stock = 2,25,505
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