XoXHollyXoX
Feb 7, 2010, 07:17 PM
Four Corners Equipment Co. wants to prepare interim financial statements for the first quarter of 2011. The company uses periodic inventory system but would like to avoid making a physical count of inventory. During the last five years, the company's gross profit rate has averaged 30%. The following information for the year's first quarter is available from its records:
January 1 beginning inventory... $ 752,880
Purchases... 2,132,100
Purchase returns... 38,370
Transportation-in... 65,900
Sales... 3,710,250
Sales returns... 74,200
Required
Use the gross profit method to prepare an estimate of the company's March 31, 2011, inventory.
Check Figure... $367,275
Net Sales... $
Cost of goods sold:
Beginning inventory... $
Net purchases... $
Goods available for sale... $
Ending inventory... $
COGS (Cost of goods sold)... $
Gross Profit... $
January 1 beginning inventory... $ 752,880
Purchases... 2,132,100
Purchase returns... 38,370
Transportation-in... 65,900
Sales... 3,710,250
Sales returns... 74,200
Required
Use the gross profit method to prepare an estimate of the company's March 31, 2011, inventory.
Check Figure... $367,275
Net Sales... $
Cost of goods sold:
Beginning inventory... $
Net purchases... $
Goods available for sale... $
Ending inventory... $
COGS (Cost of goods sold)... $
Gross Profit... $