Question 1

Based on the following data, calculate the estimated cost of the merchandise inventory on March 31 using the retail method. $\begin{array}{llrr}&\text { Cost } & \text { Retail } \
\text { March } 1  \text { Merchandise inventory } & \$ 225,000 & \$ 357,600 \
\text { March 1-31 Purchases (net) } & 454,245 & 612,750 \
\text { March 1-31 Sales } & & 835,000
\end{array}$

Accepted Answer

The answer of Based on the following data, calculate the...

Question 2

A business using the retail method of inventory costing determines that merchandise inventory at retail is $2,300,000. If the ratio of cost to retail price is 55%, what is the amount of inventory to be reported on the financial statements?

Accepted Answer

The answer of A business using the retail method of...

Question 3

Fill in the missing amounts from the chart below regarding the calculation of Bean Corporation's estimated inventory using the retail method of estimation.

Accepted Answer

The answer of Fill in the missing amounts from the...

Question 4

On the basis of the following data, determine the estimated cost of the inventory as of March 31 by the retail method, presenting details of the computation in good order.

Accepted Answer

The answer of On the basis of the following data,...

Question 5

Based on the following data, estimate the cost of ending merchandise inventory using the gross profit method. $\begin{array}{lr}
\text { Sales } & \$ 250,000 \
\text { Estimated gross profit rate } & 25 \%\
\text { Beginning merchandise inventory } & \$ 9,000 \
\text { Purchases (net) } & 211,000 \
\text { Merchandise available for sale } & \$ 220,000
\end{array}$

Accepted Answer

The answer of Based on the following data, estimate the...

Question 6

The following data were taken from the annual reports of Big Bang Inc., a manufacturer of fireworks, and Orange Inc., a manufacturer of computers.​ $$\begin{array} { | l | r | r | } 
\hline & \text { Big Bang Inc. } & { \text { Orange Inc. } } \
\hline \text { Cost of merchandise sold } & \$ 830,000 & \$ 11,540,000 \
\hline \text { Inventory, end of year } & 190,000 & 320,000 \
\hline \text { Inventory, beginning of year } & 240,000 & 290,000 \
\hline
\end{array}$$ (a) Determine the 
(1) inventory turnover and 
(2) days' sales in inventory for Big Bang and Orange.Round your answers to two decimal places.
(b) How would you expect these measures to compare between the companies? Why?

Accepted Answer

The answer of The following data were taken from the...

Question 7

On the basis of the following data, estimate the cost of the merchandise inventory at March 31 by the retail method. $$\begin{array} { l l r r } 
\text { March 1 } & \text { Merchandise inventory } & \$ 250,000 & \$ 350,000 \
\text { March 1-31 } & \text { Purchases (net) } & 850,000 & 1,650,000 \
\text { March 1-31 } & \text { Sales } & & 845,000
\end{array}$$

Accepted Answer

The answer of On the basis of the following data,...

Question 8

During August, the first month of the fiscal year, sales totaled $875,000 and the cost of merchandise available for sale totaled $850,000. Estimate the cost of the merchandise inventory as of August 31, based on an estimated gross profit rate of 45%.

Accepted Answer

The answer of During August, the first month of the...

Quiz 7: Inventories

A business using the retail method of inventory costing determines that merchandise inventory at retail is $2,300,000. If the ratio of cost to retail price is 55%, what is the amount of inventory to be reported on the financial statements?

Fill in the missing amounts from the chart below regarding the calculation of Bean Corporation's estimated inventory using the retail method of estimation.

On the basis of the following data, determine the estimated cost of the inventory as of March 31 by the retail method, presenting details of the computation in good order.

During August, the first month of the fiscal year, sales totaled $875,000 and the cost of merchandise available for sale totaled $850,000. Estimate the cost of the merchandise inventory as of August 31, based on an estimated gross profit rate of 45%.