Exercise 9-14 Crane Company uses the gross profit method to estimate inventory for monthly reporting...

Exercise 9-14
Crane 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       $ 162,000
Purchases (gross)       637,500
Freight-in       28,600
Sales revenue       1,031,100
Sales returns       69,600
Purchase discounts       11,500

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Compute the estimated inventory at May 31, assuming that the gross profit is 20% of net sales.

The estimated inventory at May 31
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Compute the estimated inventory at May 31, assuming that the gross profit is 20% 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
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ekkarill92 answered 1 year ago

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