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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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