Selected data on inventory, purchases, and sales for Celebrity Tan Co. and Ranchworks Co. are as follows: Cost Retail Celebrity Tan Co. Inventory, August 1 $ 300,000 $ 575,000 Transactions during August: Purchases (net) 2,021,900 3,170,000 Sales 3,250,000 Ranchworks Co. Inventory, March 1 $880,000 Transactions during March through November: Purchases (net) 9,500,000 Sales 15,800,000 Estimated gross profit rate 38% Required: 1. Determine the estimated cost of the inventory of Celebrity Tan Co. on August 31 by the retail method.* Enter all ratios as percents, rounded to one decimal place. 2. a. Estimate the cost of the inventory of Ranchworks Co. on November 30 by the gross profit method.* b. Assume that Ranchworks Co. took a physical inventory on November 30 and discovered that $369,750 of inventory was on hand. What was the estimated loss of inventory due to theft or damage during March through November? * Refer to the list of Amount Descriptions provided for the exact wording of the answer choices for text entries. Amount Descriptions Estimated cost of goods sold Estimated gross profit Estimated inventory, November 30 Estimated loss due to theft or damage, August Estimated loss due to theft or damage, March 1–November 30 Inventory, August 1 Inventory, August 31, at retail Inventory, August 31, at estimated cost Inventory, March 1 Merchandise available for sale Physical inventory count, August 31 Physical inventory count, November 30 Purchases for March-November (net) Purchases in August (net) Sales for August Sales for March-November 1. Determine the estimated cost of the inventory of Celebrity Tan Co. on August 31 by the retail method. Refer to the list of Amount Descriptions provided for the exact wording of the answer choices for text entries. Enter all ratios as percents, rounded to one decimal place.
Selected data on inventory, purchases, and sales for Celebrity Tan Co. and Ranchworks Co. are as follows: Cost Retail Celebrity Tan Co. Inventory, August 1 $ 300,000 $ 575,000 Transactions during August: Purchases (net) 2,021,900 3,170,000 Sales 3,250,000 Ranchworks Co. Inventory, March 1 $880,000 Transactions during March through November: Purchases (net) 9,500,000 Sales 15,800,000 Estimated gross profit rate 38% Required: 1. Determine the estimated cost of the inventory of Celebrity Tan Co. on August 31 by the retail method.* Enter all ratios as percents, rounded to one decimal place. 2. a. Estimate the cost of the inventory of Ranchworks Co. on November 30 by the gross profit method.* b. Assume that Ranchworks Co. took a physical inventory on November 30 and discovered that $369,750 of inventory was on hand. What was the estimated loss of inventory due to theft or damage during March through November? * Refer to the list of Amount Descriptions provided for the exact wording of the answer choices for text entries. Amount Descriptions Estimated cost of goods sold Estimated gross profit Estimated inventory, November 30 Estimated loss due to theft or damage, August Estimated loss due to theft or damage, March 1–November 30 Inventory, August 1 Inventory, August 31, at retail Inventory, August 31, at estimated cost Inventory, March 1 Merchandise available for sale Physical inventory count, August 31 Physical inventory count, November 30 Purchases for March-November (net) Purchases in August (net) Sales for August Sales for March-November 1. Determine the estimated cost of the inventory of Celebrity Tan Co. on August 31 by the retail method. Refer to the list of Amount Descriptions provided for the exact wording of the answer choices for text entries. Enter all ratios as percents, rounded to one decimal place.
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter6: Inventories
Section: Chapter Questions
Problem 7PB: Retail method; gross profit method Selected data on inventory, purchases, and sales for Jaffe Co....
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Selected data on inventory, purchases, and sales for Celebrity Tan Co. and Ranchworks Co. are as follows:
|
Cost
|
Retail
|
Celebrity Tan Co. | ||
Inventory, August 1 | $ 300,000 | $ 575,000 |
Transactions during August: | ||
Purchases (net) | 2,021,900 | 3,170,000 |
Sales | 3,250,000 | |
Ranchworks Co. | ||
Inventory, March 1 | $880,000 | |
Transactions during March through November: | ||
Purchases (net) | 9,500,000 | |
Sales | 15,800,000 | |
Estimated gross profit rate | 38% |
Required: | |||||||
1. | Determine the estimated cost of the inventory of Celebrity Tan Co. on August 31 by the retail method.* Enter all ratios as percents, rounded to one decimal place. | ||||||
2. |
|
Amount Descriptions | |
Estimated cost of goods sold | |
Estimated gross profit | |
Estimated inventory, November 30 | |
Estimated loss due to theft or damage, August | |
Estimated loss due to theft or damage, March 1–November 30 | |
Inventory, August 1 | |
Inventory, August 31, at retail | |
Inventory, August 31, at estimated cost | |
Inventory, March 1 | |
Merchandise available for sale | |
Physical inventory count, August 31 | |
Physical inventory count, November 30 | |
Purchases for March-November (net) | |
Purchases in August (net) | |
Sales for August | |
Sales for March-November |
1. Determine the estimated cost of the inventory of Celebrity Tan Co. on August 31 by the retail method. Refer to the list of Amount Descriptions provided for the exact wording of the answer choices for text entries. Enter all ratios as percents, rounded to one decimal place.
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