Estimating ending inventory cost

Related BrainMass Solutions

• Estimating ending inventory

  Computation of Ending Inventory: Beginning Inventory Plus: Purchases Plus: Transportation-In Goods Available for Sale Less: Cost of Goods Sold Ending Inventory Estimating Ending Inventory: Gross margin Method Don

• Retail Inventory Method for Greene Company

  (a) Ending inventory = Beginning inventory + purchases - cost of goods sold Cost of goods sold = Sales X (1- gross profit rate) = 400,000 X (1-0.25) = 300,000 Ending inventory = 100,000+400,000-300,000 = 200,000 Inventory salvaged from flood = 50,000

• Estimating ending inventory using the conventional method (average cost and the LCM approximation).

  493402 Estimating ending inventory using the conventional method Kiddie World uses a periodic inventory system and the retail inventory method.

• Physical Inventory for Use In an Interim Financial Statement

  211586 Estimating the Cost of Inventory Pine Company estimates the cost of its physical inventory at March 31 for use in an interim financial statement. The rate of markup on cost is 25%.

• Estimating Inventory Shortgages Using Historical Amounts

  Cost of goods sold (Use average cost of goods sold percentage for 2009 and 2010) B. Ending inventory at March 31 based on historical cost of goods sold percentage. C. Inventory shortage if the inventory balance as of March 31 is $100,000.

• Accouting: Cost of sales.

  inventory $310,000 The solution deals with estimating the cost of inventory using the gross profit method.

• Gross Profit Method or Retail Inventory Method

  Useful in estimating ending inventory 2. Useful in interim reporting, but usually not in annual reporting 3. Useful when Inventory has been destroyed To use the Gross Profit Method, we must know: 1. Cost of Beginning Inventory 2.

• Gross profit/ending inventory and Schedule of Cash Receipts

  What is the value of ending inventory? A. Gross Profit= Sales- Cost of Goods Sold =208000-134000 =$74000= Answer Note: 1) Sales=13000*16 =$208000 2) Cost of Goods Sold= 3000*(2+4+2)+10000*(3+5+3) =$134000 B.

• Estimating Production Costs

  How many umbrellas must the company produce to meet demand and have sufficient ending inventory? b. What is the cost of materials that must be purchased?