FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The answer is not $158,425.
Transcribed Image Text:Metlock 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
Purchases (gross)
Freight-in
Sales revenue
Sales returns
Purchase discounts
(a)
$149,100
683,200
28,700
998,600
76,500
11,000
* Your answer is incorrect.
Compute the estimated inventory at May 31, assuming that the gross profit is 25% of sales.
The estimated inventory at May 31
tA
$
158425
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