S
strawberrie090
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Ernst Equipment Co. wants to prepare interim financial statements for the first quarter. The company wishes to avoid making a physical count of inventory. Ernst's gross profit rate averages 30%. The following information for the first quarter is available from its records:
January 1 begining inventory...............................$752,880
Cost of good purchased........................................2,159,630
Sales..................................................................3,710,250
Sales Revenue.....................................................74,200
Use the gross profit method to estimate the company's first quarter ending inventory.
Check: Estim. ending inventory, $367,275
January 1 begining inventory...............................$752,880
Cost of good purchased........................................2,159,630
Sales..................................................................3,710,250
Sales Revenue.....................................................74,200
Use the gross profit method to estimate the company's first quarter ending inventory.
Check: Estim. ending inventory, $367,275