Acc255 week 5 P6-7BB Ernst Equipment Co. wants to prepare interim financial

Acc255 week 5 Problem 6-7BB Ernst Equipment Co. wants to prepare interim financial statements for the first quarter

Fundamental Accounting Principles: Larson−Wild−Chiappetta, Seventeenth Edition

Problem 6-7BB P4 Gross profit method

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 beginning Inventory…………..$752,880

Cost of goods purchased………………...2,159.630

Sales……………………………………   3,710,250

Sales returns…………………………….. 74,200

Requires

Use the gross profit method to estimate the company’s first quarter ending inventory.

Check  Estim, ending inventory

$367,275