Answered: Estimate the cost value of the…

Business

Accounting

Estimate the cost value of the inventory as of July 31 using the gross profit method (in $).

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

On July 1, the total inventory for Save-Mor Merchandisers was $614,100. Net purchases during the month were $313,900and sales amounted to $611,400. Gross margin on sales was 67%.

Estimate the cost value of the inventory as of July 31 using the gross profit method (in $).

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