question archive Brief Exercise 6-11 At May 31, Waterway Company has net sales of $360,000 and cost of goods available for sale of $266,000
Brief Exercise 6-11 At May 31, Waterway Company has net sales of $360,000 and cost of goods available for sale of $266,000
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Brief Exercise 6-11 At May 31, Waterway Company has net sales of $360,000 and cost of goods available for sale of $266,000. Compute the estimated cost of the ending inventory, assuming the gross profit rate is 35%. Estimated cost of ending inventory Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT
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Cost of goods available for sale = Opening Inventory+ Cost of goods Purchased
Gross Profit is always calculated as a percentage of Sales
Gross Profit = $360000* 35% = $126000
Closing Inventory = (Opening Inventory+ Cost of goods Purchased + Gross Profit)- Net Sales
OR,
Closing Inventory = (Cost of goods available for sale + Gross Profit)- Net Sales
Closing Inventory = ($266000 + $ 126000) - $360000
Therefore, Closing Inventory = $ 32000
Answer is $32000
