1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Goshia [24]
3 years ago
10

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 January was $57,800. The following information for the month of February was available from company records:
Purchases of $120,000
Freight-in of $2,700
Sales of $180,000
Sales Returns of $ 4,400
Purchase Returns of $3,400
In addition, the controller is aware of $8,100 of inventory that was stolen during February from one of the company's warehouses.

Required:

Using the template below, calculate the estimated inventory at the end of February, assuming a gross profit ratio of 45%.

Beginning Inventory $57,800
Plus: Net purchases _____
Freight-in 2,700
Cost of Goods Available for Sale _____
Less: Cost of Goods Sold
Net Sales _____
Less Estimated Gross Profit _____
Estimated Cost of Goods Sold _____
Estimated Inventory before Theft _____
Less: Stolen Inventory 8,100
Estimated Ending Inventory _____
Business
1 answer:
34kurt3 years ago
8 0

Answer:

The estimated inventory at the end of February is $73400 as shown below

Explanation:

Beginning Inventory $57,800

Plus: Net purchases $120000

Freight-in                     $2,700

Cost of Goods Available for Sale $180500

less: Cost of Goods Sold

Net Sales$180000

Less Estimated Gross Profit $81000

Estimated Cost of Goods Sold $99000

Estimated Inventory before Theft 81500

Less: Stolen Inventory 8,100

Estimated Ending Inventory 73400

Gross profit $180000*45%=$81000

You might be interested in
Define Moore’s Law and explain why its consequences are important to business professionals today. State how business profession
balandron [24]

Answer:

Explanation:

1)Moore's Law was created by Gordon Moore, the co-founder of Intel Corporation. Moore's Law states that the speed of a computer doubles every 18 months. Because of Moore's Law, the ratio of price to computer performance has fallen and the cost of storage, data processing, and communication have dropped to nearly zero and any routine skill can be outsourced to the lowest bidder.

2)The text defined job security as a "marketable skill and the courage to use it". To attain job security, business professionals should develop their non-routine cognitive skills such as collaboration, the ability to experiment, systems thinking, and abstract reasoning. This course in introductory MIS requires students to learn these four keys skills because every topic will require us to apply and practice these skills.

3)1. Course gives students necessary background to assess, evaluate, and apply emerging information technology to business

2. Course leads the path to job security by educating students in marketable skills

3. Numerous MIS jobs are available

7 0
4 years ago
Huggins Co. has identified an investment project with the following cash flows. Year Cash Flow 1 $ 880 2 1,250 3 1,510 4 1,675 I
myrzilka [38]

Answer:

the present value is $4,316.35

Explanation:

The computation of the present value of given cash flows is shown below:

Present value is

= Cash flows at year 1 ÷ (1 + rate of interest) + Cash flows at year 2 ÷ (1 + rate of interest)^2 + Cash flows at year 3 ÷ (1 + rate of interest)^3 + Cash flows at year 4 ÷ (1 + rate of interest)^4

= $880 ÷ 1.08 + $1,250 ÷ 1.08^2 + $1,510 ÷ 1.08^3 + $1,675 ÷ 1..08^4

= $4,316.35

Hence, the present value is $4,316.35

5 0
2 years ago
The variable overhead spending variance, the fixed overhead spending variance, and the variable overhead efficiency variance can
kozerog [31]

Answer:

Controllable variance

Explanation:

The controllable variance is the combination of the variable overhead, fixed overhead spending variance and together with this, the variable overhead efficiency variance is also involved

Hence, as per the given situation, the controllable variance is to be considered

Therefore the above represents the answer

7 0
3 years ago
If a prospective home buyer simply changes his or her mind after putting up earnest money, he or she usually forfeits the money.
adell [148]
The answer for this question is true

3 0
3 years ago
Royce, a California resident receives $20,000 from a rental building in Arkansas. Royce only reports the $20,000 to Arkansas and
tigry1 [53]

Answer:

$2,000

Explanation:

The state of California will grant its citizens a tax credit equal to the amount of taxes paid in other states when computing income received outside its borders. This same logic is applied by the federal government when someone earns income in foreign countries and pays taxes to a foreign government. Taxes paid to other governments decrease the amount of taxes that you pay to your own government.

5 0
3 years ago
Other questions:
  • All else equal, a firm would prefer to have a higher gross margin. <br> a. True <br> b. False
    12·1 answer
  • Zappos employees are "driven" to participate in charitable activities and feel that giving back to the community is something th
    15·1 answer
  • Novak Company uses a perpetual inventory system. Its beginning inventory consists of 113 units that cost $77 each. During June,
    8·1 answer
  • New Agency, Debby just got a job as an assistant in a new federal agency called the Ac and auditing profession. The agency is he
    14·1 answer
  • Question 1 Multiple Choice Worth 10 points)
    12·1 answer
  • How do I get more questions?
    10·2 answers
  • Question 9 Suppose money invested in a hedge fund earns 1% per trading day. There are 250 trading days per year. What will be yo
    11·1 answer
  • Over the next few years, many organization will be collecting vast amounts of data on their employees ranging from engagement to
    14·1 answer
  • _______________operate as for-profit or not-for-profit organizations that facilitate, promote, or encourage B2B relationships be
    5·1 answer
  • Personal selling is considerably less effective than other forms of promotion in obtaining a sale and gaining a satisfied custom
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!