Kroger, 28 days’ sales in inventory

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Chapter 6 Inventories

Appendix EX 6-25 Retail method On the basis of the following data, estimate the cost of the merchandise inventory at June 30 by the retail method: Cost Retail June 1 Merchandise inventory 165,000 275,000 June 1–30 Purchases net 2,361,500 3,800,000 June 1–30 Sales net 3,550,000 Appendix EX 6-26 Gross profit method The merchandise inventory was destroyed by fire on December 13. The following data were obtained from the accounting records: Jan. 1 Merchandise inventory 350,000 Jan. 1–Dec. 13 Purchases net 2,950,000 Sales net 4,440,000 Estimated gross proit rate 35 a. Estimate the cost of the merchandise destroyed. b. Briefly describe the situations in which the gross profit method is useful. Appendix EX 6-27 Gross profit method Based on the following data, estimate the cost of the ending merchandise inventory: Sales net 9,250,000 Estimated gross proit rate 36 Beginning merchandise inventory 180,000 Purchases net 5,945,000 Merchandise available for sale 6,125,000 Appendix EX 6-28 Gross profit method Based on the following data, estimate the cost of the ending merchandise inventory: Sales net 1,450,000 Estimated gross proit rate 42 Beginning merchandise inventory 100,000 Purchases net 860,000 Merchandise available for sale 960,000

a. Merchandise destroyed: 414,000

PR 6-1A FIFO perpetual inventory OBJ. 2, 3 The beginning inventory at RTE Office Supplies and data on purchases and sales for a three-month period ending August 31, 2014, are as follows: Date Transaction number of Units Per Unit Total June 1 Inventory 500 30.00 15,000 10 Purchase 1,500 34.00 51,000 28 Sale 750 50.00 37,500 30 Sale 250 52.00 13,000

3. 193,350

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Chapter 6 Inventories