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Vaughn 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 $162,100 Purchases (gross) 691,300 Freight-in 30,800 Sales revenue 1,041,700 Sales returns 65,900 Purchase discounts 12,500 (a) Compute the estimated inventory at May 31, assuming that the gross profit is 25% of sales. The estimated inventory at May 31 $

Vaughn 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 $162,100 Purchases (gross) 691,300 Freight-in 30,800 Sales revenue 1,041,700 Sales returns 65,900 Purchase discounts 12,500 (a) Compute the estimated inventory at May 31, assuming that the gross profit is 25% of sales. The estimated inventory at May 31 $

FINANCIAL ACCOUNTING
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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Vaughn 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 $162,100 Purchases (gross) 691,300 Freight-in 30,800 Sales revenue 1,041,700 Sales returns 65,900 Purchase discounts 12,500 (a) Compute the estimated inventory at May 31, assuming that the gross profit is 25% of sales. The estimated inventory at May 31 $
Transcribed Image Text:Vaughn 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 $162,100 Purchases (gross) 691,300 Freight-in 30,800 Sales revenue 1,041,700 Sales returns 65,900 Purchase discounts 12,500 (a) Compute the estimated inventory at May 31, assuming that the gross profit is 25% of sales. The estimated inventory at May 31 $
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