In addition to taking a physical inventory on December 31, Hurst decides to estimate the ending inventory and cost of Goods sold. During the fiscal year ended December 31, 20-2, net sales of $100,000 were made at a normal gross profit rate of 35%. Use the gross profit method to estimate the cost of goods sold for the fiscal year ended December 31 and the inventory on December 31 Hurst Company's beginning inventory and purchases during the fiscal year endedDecember 31, 20-2, were as follows:UnitsUnit Price Total CostJanuary 1, 20-2January 12February 28June 29August 31October 29Beginning inventory1st purchase2nd purchase3rd purchase4th purchase5th purchase6th purchase7th purchase$15,0005,7508,70018,00013,2005,40012,9508,000$87,0001,500$10.0050011.5060014.501,20015.0080016.5030018.00November 30December 2170018.5040020.006,000There are 1,200 units of inventory on hand on December 31, 20-2.

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Description: In addition to taking a physical inventory on December 31, Hurst decides to estimate the ending inventory and cost of Goods sold. During the fiscal year ended December 31, 20-2, net sales of $100,000 were made at a normal gross profit rate of 35%. Us

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Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter6: Inventories

Section: Chapter Questions

Problem 4BE: Beginning inventory, purchases, and sales for WCS12 are as follows: Assuming a perpetual inventory...

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In addition to taking a physical inventory on December 31, Hurst decides to estimate the ending inventory and cost of Goods sold. During the fiscal year ended December 31, 20-2, net sales of $100,000 were made at a normal gross profit rate of 35%. Use the gross profit method to estimate the cost of goods sold for the fiscal year ended December 31 and the inventory on December 31

Hurst Company's beginning inventory and purchases during the fiscal year ended
December 31, 20-2, were as follows:
Units
Unit Price Total Cost
January 1, 20-2
January 12
February 28
June 29
August 31
October 29
Beginning inventory
1st purchase
2nd purchase
3rd purchase
4th purchase
5th purchase
6th purchase
7th purchase
$15,000
5,750
8,700
18,000
13,200
5,400
12,950
8,000
$87,000
1,500
$10.00
500
11.50
600
14.50
1,200
15.00
800
16.50
300
18.00
November 30
December 21
700
18.50
400
20.00
6,000
There are 1,200 units of inventory on hand on December 31, 20-2.

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