Chapter 16.II, Problem 5RE

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8th Edition

Robert Brechner + 1 other

ISBN: 9781305585447

Textbook Problem

Omni Fitness Equipment, Inc., maintains a gross margin of 55% on all its weight training products. In April, Omni had a beginning inventory of $146,000. net purchases of $206,000, and net sales of $437,000. Use the gross profit method to estimate the cost of ending inventory.

To determine

**To calculate:** The cost of ending inventory for April, with the help of gross profit method. Given that, Omni Fitness Equipment, Inc., maintains a gross margin of

Explanation

**Given Information:**

The provided information is:

**Formula used:**

Step 1: Relation between Goods available for sale with beginning inventory and net purchased is given by:

Step 2: Estimated cost of goods sold is given by:

Step 3: Estimated ending inventory is given by:

**Calculation:**

Consider the provided information:

List the beginning inventory and purchases and calculate the goods available for sale

Sect-16.I P-1TIESect-16.I P-2TIESect-16.I P-3TIESect-16.I P-4TIESect-16.I P-1RESect-16.I P-2RESect-16.I P-3RESect-16.I P-4RESect-16.I P-5RESect-16.I P-6RE

Sect-16.I P-7RESect-16.I P-8RESect-16.I P-9RESect-16.I P-10RESect-16.II P-5TIESect-16.II P-6TIESect-16.II P-1RESect-16.II P-2RESect-16.II P-3RESect-16.II P-4RESect-16.II P-5RESect-16.II P-6RESect-16.II P-7RESect-16.II P-8RESect-16.II P-9RESect-16.III P-7TIESect-16.III P-8TIESect-16.III P-9TIESect-16.III P-1RESect-16.III P-2RESect-16.III P-3RESect-16.III P-4RESect-16.III P-5RESect-16.III P-6RESect-16.III P-7RESect-16.III P-8RESect-16.III P-9RESect-16.III P-10RESect-16.III P-11RESect-16.III P-12RESect-16.III P-13RESect-16.III P-14RESect-16.III P-15RECh-16 P-1CRCh-16 P-2CRCh-16 P-3CRCh-16 P-4CRCh-16 P-5CRCh-16 P-6CRCh-16 P-7CRCh-16 P-8CRCh-16 P-9CRCh-16 P-10CRCh-16 P-11CRCh-16 P-12CRCh-16 P-13CRCh-16 P-14CRCh-16 P-1ATCh-16 P-2ATCh-16 P-3ATCh-16 P-4ATCh-16 P-5ATCh-16 P-6ATCh-16 P-7ATCh-16 P-8ATCh-16 P-9ATCh-16 P-10ATCh-16 P-11ATCh-16 P-12ATCh-16 P-13AT

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