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Question

https:// cation cornfow connecthm slegt ue&return; rl https%3A%2F%2 heck ation con %2Fpaa eb Findex tm 3% egistri Se are connect he or net Hel CHAPTER S HOMEWORK 13 Wayward Company wants to prepare interim financial statements for the first quarter. The company wishes to avoid making a physical co ntof inventory. Wayward's gross profit rate averages 30% T he following infornation for the first quarter is available from its records 10 poimts anuary 1 beginning inventory Cost of goods purchased 378,268 1,609,856 1,261,150 1e,158 eBook Sales returns Pint References Required: Use the gross profit method to estimate the company's first quarter ending inventory 370 260 Beginning inventory Net cost of goods purchased 1,019,05 $ 1,379,310 ost of goods avalable for sale limated cost of goods sold Estimated March 31 inventory

Explanation / Answer

since gross profit is 30% of sales so cost of goods sold will be 70% of sales Beginning inventory 370,260 Net cost of goods purchased 1,009,050 cost of goods available for sale 1,379,310 Estimated cost of goods sold 875,700 Estimated March 31 inventory 503,610 cost of goods sold = (1,261,150-10,150)*70% 875700 since gross profit is 30% of sales so cost of goods sold will be 70% of sales Beginning inventory 370,260 Net cost of goods purchased 1,009,050 cost of goods available for sale 1,379,310 Estimated cost of goods sold 875,700 Estimated March 31 inventory 503,610 cost of goods sold = (1,261,150-10,150)*70% 875700

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