Retail Method; Gross Profit Method Selected data on merchandise inventory, purchases, and sales for Celebrity Tan and Ranchworks Co. are as follows: Cost Retail Celebrity Tan Merchandise inventory, August 1 $284,000 $424,000 Transactions during August: Purchases (net) 3,267,000 4,876,000 Sales 5,016,000 Ranchworks Co. $239,000 Merchandise inventory, March 1 Transactions during March through November: 3,177,000 Purchases (net) 4,744,000 Sales 32% Estimated gross profit rate Required: 1. Determine the estimated cost of the merchandise inventory of Celebrity Tan on August 28 by the retail method, presenting details
Retail Method; Gross Profit Method Selected data on merchandise inventory, purchases, and sales for Celebrity Tan and Ranchworks Co. are as follows: Cost Retail Celebrity Tan Merchandise inventory, August 1 $284,000 $424,000 Transactions during August: Purchases (net) 3,267,000 4,876,000 Sales 5,016,000 Ranchworks Co. $239,000 Merchandise inventory, March 1 Transactions during March through November: 3,177,000 Purchases (net) 4,744,000 Sales 32% Estimated gross profit rate Required: 1. Determine the estimated cost of the merchandise inventory of Celebrity Tan on August 28 by the retail method, presenting details
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter6: Inventories
Section: Chapter Questions
Problem 7PA: Retail method; gross profit method Selected data on inventory, purchases, and sales for Celebrity...
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