Gross profit method

ivory5130 · #1 May 6, 2007, 09:10 AM

Does anyone know anything about this at all.

Gross profit rate averages 30%

Jan 1. beginning inventory 752,880
cost of goods purchased 2,159,630
sales 3,710,250
sales returns 74,200

use the gross prfit method toestimate the company's first quarter ending inventory.

It says that my estim. ending inventory should be 367,275 but I am not coming up with that. Help!!!!!!

masud · May 7, 2007, 03:07 AM

sales 3710250
slaes return 74200
net sales 3636050 100%

cost of sales

opening inventory 752880
purcases 2159630
closing inventory 367275
2545235 70%
gross profit 1090815 30%



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