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Gross Profit Method of Estimating Inventory E9.14: Astaire ASA uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May. Inventory, May 1 Purchases (gross) Freight-in € 160,000 640,000 30,000 Sales Sales returns Purchases discounts € 1,000,000 70,000 12,000 Instructions: (a) Compute the estimated inventory at May 31, assuming that the gross profit is 25% of sales.

Gross Profit Method of Estimating Inventory E9.14: Astaire ASA uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May. Inventory, May 1 Purchases (gross) Freight-in € 160,000 640,000 30,000 Sales Sales returns Purchases discounts € 1,000,000 70,000 12,000 Instructions: (a) Compute the estimated inventory at May 31, assuming that the gross profit is 25% of sales.

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 3RE: Reid Company uses the periodic inventory system. On January 1, it had an inventory balance of...
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Gross Profit Method of Estimating Inventory E9.14: Astaire ASA 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 Instructions: (a) Compute the estimated inventory at May 31, assuming that the gross profit is 25% of sales. Sales € 1,000,000 Sales returns 70,000 Purchases discounts 12,000
Transcribed Image Text:Gross Profit Method of Estimating Inventory E9.14: Astaire ASA 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 Instructions: (a) Compute the estimated inventory at May 31, assuming that the gross profit is 25% of sales. Sales € 1,000,000 Sales returns 70,000 Purchases discounts 12,000
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