(Answered) 1 gross profit method astaire company uses the gross profit

Accounting

1. Gross Profit Method Astaire Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May.

Inventory, May 1 $ 160,000
Purchases (gross) 640,000
Freight-in 30,000
Sales 1,000,000
Sales returns 70,000
Purchase discounts 12,000

(a) Compute the estimated inventory at May 31, assuming that the gross profit is 25% of sales.

(b) Compute the estimated inventory at May 31, assuming that the gross profit is 25% of cost.

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91875052
Price:- $10

Verified Expert

Priced at $20 Now at $10, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question - daniels adjusted gross income is 90000 during

Question - Daniel's adjusted gross income is $90,000. During the year he incurred $18,000 of medical expenses and was reimbursed for $3,000 of these expenses. What is his allowable medical expense deduction if he is age ...

Question what were the causes of the global financial

Question: What were the causes of the global financial crisis? Has the global financial crisis strengthened the global banking system? 5-6 pages. The response must be typed, single spaced, must be in times new roman font ...

Question - bowcutt company sold 400000 of 7 percent bonds

Question - Bowcutt Company sold $400,000 of 7 percent bonds on January 1, 2018, when the effective rate of interest was 6%. The bonds will mature in five years, and pay interest on June 30 and December 31. Using the effe ...

Question - in january ms nw projects that her employer will

Question - In January, Ms. NW projects that her employer will withhold $25,000 from her 2019 salary. However, she has income from several other sources and must make quarterly estimated tax payments. 1. Compute the quart ...

Question - c d rom has just given an insurance company

Question - C. D. Rom has just given an insurance company $35,500. In return, he will receive an annuity of $4,400 for 20 years. At what rate of return must the insurance company invest this $35,500 in order to make the a ...

Question - kon corp has outstanding accounts receivable

Question - Kon Corp. has outstanding accounts receivable totaling $6.5 million as of December 31 and sales on credit during the year of $24 million. There is also a credit balance of $12,000 in the allowance for doubtful ...

Question access the answer the questions and submit to me

Question: Access the answer the questions and submit to me via Canvas. 1. What is a sole proprietorship and how is it taxed? 2. Define the term "limited liability". 3. List the advantages of an "S" corporation 4. Define ...

Assignment -company name - hewlett packard1 what does your

Assignment - Company name - Hewlett Packard. 1. What does your company produce? 2. Analyze the trends in sales, cost of goods sold, gross profit, and operating income for your manufacturing company. Prepare a trend analy ...

Question - the samuel company uses the straight-line method

Question - The Samuel Company uses the straight-line method to depreciate its equipment. On May 1, 2014, the company purchased some equipment for $224,000. The equipment is estimated to have a useful life of ten years an ...

Question 1why is it important to track investment property

Question: 1. Why is it important to track investment property, plant, and equipment? 2. How does the Accumulated Depreciation account play into the tracking of the value of Property, Plan, and Equipment? 3. Why is this i ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Accounting Basics Expert