Business
Engineering
Math
Science
Social Science
Gross profit method Based on the following data, estimate the cost of the ending inventory:
Financial And Managerial Accounting
Solutions
Financial And Managerial Accounting
Gross profit method
Based on the following data, estimate the cost of the ending inventory:
Compute the estimated cost of ending merchandise inventory.
Explanation of Solution
Gross profit method
This method is use the estimated gross profit for the period to evaluate and ascertain the ending inventory for the period. The gross profit for the period is calculated from the preceding year, which is adjusted for any current period changes in the sales and cost price of the inventory.
The estimated cost of merchandise sold is calculated by deducting the estimated gross profit from the sales. The estimated gross profit is determined by multiplying sales by gross profit rate. The estimated ending merchandise inventory is calculated by deducting cost of merchandise sold from merchandise inventory available for sale.
Working note 1: Compute the estimated gross profit is calculated as follows:
Chapter 6 Solutions
Additional Business Textbook Solutions
Cornerstones of Financial Accounting
Corporate Financial Accounting
Financial & Managerial Accounting
Accounting Information Systems
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
Principles of Microeconomics (MindTap Course List)
Brief Principles of Macroeconomics (MindTap Course List)
Principles of Macroeconomics (MindTap Course List)
Essentials of Business Communication (MindTap Course List)
Probability and Statistics for Engineering and the Sciences
STATISTICS F/BUSINESS+ECONOMICS-TEXT
Foundations of Business (MindTap Course List)
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
Principles of Economics (MindTap Course List)
Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
Fundamentals of Financial Management (MindTap Course List)
Financial Accounting
College Accounting, Chapters 1-27
Management, Loose-Leaf Version
Essentials of Economics (MindTap Course List)
Accounting Information Systems
Managerial Accounting: The Cornerstone of Business Decision-Making
Intermediate Accounting: Reporting And Analysis
College Accounting (Book Only): A Career Approach
Contemporary Marketing
MKTG 12:STUDENT ED.-TEXT
Financial Accounting
Financial & Managerial Accounting
College Accounting (Book Only): A Career Approach
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
Accounting (Text Only)
Principles of Macroeconomics (MindTap Course List)
Pkg Acc Infor Systems MS VISIO CD
Fundamentals of Financial Management (MindTap Course List)
Statistics for Business & Economics, Revised (MindTap Course List)
Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
Corporate Financial Accounting
PAYROLL ACCT.,2019 ED.(LL)-TEXT
Survey of Accounting (Accounting I)
Purchasing and Supply Chain Management
Practical Management Science
Microeconomics
Cornerstones of Cost Management (Cornerstones Series)
Economics For Today
Economics (MindTap Course List)
Managerial Accounting
Microeconomics: Private and Public Choice (MindTap Course List)
MACROECONOMICS FOR TODAY
Micro Economics For Today
Principles of Microeconomics
Macroeconomics: Private and Public Choice (MindTap Course List)
Economics: Private and Public Choice (MindTap Course List)
Understanding Management (MindTap Course List)
