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Posted: January 15th, 2024
National ACCOUNTING 410A Mark Price Company uses the gross profit method to estimate inventory
Mark Price 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$ 177,100Purchases (gross)642,400Freight-in30,100Sales revenue1,052,000Sales returns81,600Purchase discounts12,500(a) Compute the estimated inventory at May 31, assuming that the gross profit is 30% of sales.The estimated inventory at May 31$(b) Compute the estimated inventory at May 31, assuming that the gross profit is 30% of cost. (Round percentage of sales to 2 decimal places, e.g. 78.74% and final answer to 0 decimal places, e.g. 6,225.)The estimated inventory at May 31$
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