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On January 1, The Parts Store had a $770,000 inventory at cost. During the first...

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Accounting

On January 1, The Parts Store had a $770,000 inventory at cost. During the first quarter of the year, it
purchased $2,500,000 of merchandise, returned $19,100, and paid freight charges on purchased
merchandise totaling $33,600. During the past several years, the store's gross profit on sales has
averaged 30%. Under the assumption the store had $1,920,000 of sales during the first quarter of the year,
use the gross profit method to estimate its inventory at the end of the first quarter.
Part 2
During 2020, Harmony Co. sold $620,000 of merchandise at marked retail price. At the end of 2020,
the following information was available from its records:
At Cost At Retail
Beginning inventory $ 127,600 $ 356,800
Net purchases $ 231,240 $ 353,600
Use the retail method to estimate Harmony's 2020 ending inventory at cost. Round all calculations to
two decimal places.

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