Tate Tasers Inc. is preparing interim financial statements for the quarter ending 31 March 20X1 and needs to estimate the value of inventory on hand at the end of the quarter. Physical inventory counts are taken only at the end of the fiscal year. The following information is available: $ 400,000 900,000 1,500,000 40,000 26,000 Beginning inventory Purchases Sales Sales returns (to stock) In-bound shipping on purchases Out-bound shipping to customers HST on purchases HST on net sales Import duties Inventory storage costs 42,000 117,000 190,000 40,000 6,000 The average gross margin ratio is 30%. Required: Using the gross margin method, determine the cost of ending inventory and the cost of sales for the quarter. Ending inventory Cost of sales

Tate Tasers Inc. is preparing interim financial statements for the quarter ending 31 March 20X1 and needs to estimate the value of inventory on hand at the end of the quarter. Physical inventory counts are taken only at the end of the fiscal year. The following information is available: $ 400,000 900,000 1,500,000 40,000 26,000 Beginning inventory Purchases Sales Sales returns (to stock) In-bound shipping on purchases Out-bound shipping to customers HST on purchases HST on net sales Import duties Inventory storage costs 42,000 117,000 190,000 40,000 6,000 The average gross margin ratio is 30%. Required: Using the gross margin method, determine the cost of ending inventory and the cost of sales for the quarter. Ending inventory Cost of sales

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 67P

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