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JulijaS [17]
3 years ago
11

Royal Gorge Company uses the gross profit method to estimate ending inventory and cost of goods sold when preparing monthly fina

ncial statements required by its bank. Inventory on hand at the end of October was $58,500. The following information for the month of November was available from company records:
Purchases: $114000
Freight-in: $3900
Sales: $188000
Sales Returns: $5200
Purchase Returns: $4300

In addition, the controller is aware of $8600 of inventory that was stolen during November from one of the company's warehouses.

Required:

a. Calculate the estimated inventory at the end of November, assuming a gross profit ratio of 40%.
b. Calculate the estimated inventory at the end of November, assuming a markup on cost of 100%.
Business
1 answer:
Nastasia [14]3 years ago
7 0

Answer:

Please refer the attachment to have the solution with explanation

Download xlsx
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2 years ago
A red sleeveless dress has been a fast seller at a clothing store. Which of these might raise the price of the dress? A.A change
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Correct answer choice is:


D. A reduction in the number of dresses available from the manufacturer.


Explanation:


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3 years ago
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Which of the following values should be inserted to correctly balance the ledger shown below?
vredina [299]
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8 0
3 years ago
Anstead Co. is experiencing a decrease in sales and operating income for the fiscal year ending October 31, 2014. Ryan Frazier,
Sergeu [11.5K]

Answer:

Yes, Ryan Frazier is behaving in a professional manner.

Explanation:

Yes, Ryan Frazier is behaving in a ethical and professional manner because the company is following FOB point method when shipping goods it customers due to the fact that Ryan Frazier, controller of Anstead Co., has suggested that all orders received before the end of the fiscal year be shipped by midnight as the company follows merchandise FOB shipping points the company should go ahead and record the sales in the current year Octocber 31st due to the fact that FOB shipping point means that the buyer pays all cost incurred for the delivery of the goods once the goods has left the suppliers warehouse which makes the buyer to becomes the owner of the goods in transit when the goods are been shipped by the seller.

6 0
3 years ago
Jorgensen High Tech Inc. is a calendar-year, accrual-method taxpayer. At the end of year 1, Jorgensen accrued and deducted the f
Sindrei [870]

Question Completion:

a) Jorgensen paid the bonuses to the employees on March 1 of year 2.

b) Jorgensen paid the bonuses to the employees on April 1 of year 2.

c) Jorgensen paid the bonuses to employees on March 1 of year 2, and there is a requirement that the employee remain employed with Jorgensen on the payment date to receive the bonus.

d) Jorgensen paid the bonuses to employees on March 1 of year 2, and there is a requirement that the employee remain employed with Jorgensen on the payment date to receive the bonus; if not, the forfeited bonus is reallocated to the other employees.

Answer:

Jorgensen High Tech Inc.

a) Jorgensen paid the bonuses to the employees on March 1 of year 2.

In year 1, Jorgensen can deduct $147,000 of the bonuses.

b) Jorgensen paid the bonuses to the employees on April 1 of year 2.

In year 1, Jorgensen cannot deduct any bonuses since they were not paid within the two and one-half months rule.

c) Jorgensen paid the bonuses to employees on March 1 of year 2, and there is a requirement that the employee remain employed with Jorgensen on the payment date to receive the bonus.

Jorgensen can still deduct the $147,000 for bonuses in Year 1.  No employee had left so far.

d) Jorgensen paid the bonuses to employees on March 1 of year 2, and there is a requirement that the employee remain employed with Jorgensen on the payment date to receive the bonus; if not, the forfeited bonus is reallocated to the other employees.

Jorgensen can still deduct the $147,000 for bonuses in Year 1.  All the employees concerned have remain employed with Jorgensen till March 1.

Explanation:

a) Data and Calculations:

Accrued Bonuses:

Ken      $58,800

Jayne   $44,100

Jill       $29,400

Justin  $14,700

Total $147,000

b) Jorgensen, as a qualified calendar-year company, has until March 15 of year 2 to pay all year 1 bonuses in order to deduct the bonus expense in year 1.  However, if Ken, Jayne, Jill, and Justin had reported the accrued bonuses in their income tax forms, the 2 and 1/2 months rule will not apply.  This means that Jorgensen could still accrue the bonuses longer than 2 and 1/2 months before paying them to the employees.

7 0
3 years ago
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