Assume that we are auditing the records of Forde Corporation. A physical inventory has been...
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Accounting
Assume that we are auditing the records of Forde Corporation. A physical inventory has been taken by the company under our observation. The records of the company show the following account data. The gross prot last year was 25% of net sales; we anticipate that it will be 25% for the current year under audit.
Sales, gross
$756,000
Sales returns (returned to inventory)
12,000
Purchases, gross
372,000
Beginning inventory
240,000
Freight-in
16,800
Purchase returns and allowances
4,800
Required Estimate the cost of ending inventory using the gross profit method. Note: Do not use negative signs with your answers.
Cost of goods available for sale :
Cost of goods sold, estimated:
Ending Inventory, estimated:
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