Question 3Seasons Limited would like to estimate the month end inventory by using the sales revenueearned during the month. It has the following sales and purchases information for themonth of September to consider.Inventory, 1 September$500,000Purchase1,300,000Freight-in50,0002,100,00040,000SalesSales returnsPurchase discounts90,0003Required:(a) Compute the estimated inventory at 30 September, assuming thegross profit on selling price is 30%.(b) Compute the estimated inventory at 30 September, assuming thepercentage mark up on cost is 33.33%.

Name: Question 3Seasons Limited would like to estimate the month end invent
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Description: Question 3Seasons Limited would like to estimate the month end inventory by using the sales revenueearned during the month. It has the following sales and purchases information for themonth of September to consider.Inventory, 1 September$500,000Purc

For every organization there will always be opening stock and closing stock as all the purchases…

Business

Accounting

Seasons Limited would like to estimate the month end inventory by using the sales revenue earned during the month. It has the following sales and purchases information for the month of September to consider. Inventory, 1 September $500,000 1,300,000 50,000 Purchase Freight-in Sales 2,100,000 Sales returns 40,000 Purchase discounts 90,000

Seasons Limited would like to estimate the month end inventory by using the sales revenue earned during the month. It has the following sales and purchases information for the month of September to consider. Inventory, 1 September $500,000 1,300,000 50,000 Purchase Freight-in Sales 2,100,000 Sales returns 40,000 Purchase discounts 90,000

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter5: Inventories And Cost Of Goods Sold

Section: Chapter Questions

Problem 5.12AMCP

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