Presented below is information related to Wildhorse Corporation for the current

Question

Presented below is information related to Wildhorse Corporation for the current year.

Compute the ending inventory, assuming that (a) gross profit is 49% of sales, (b) gross profit is 60% of cost, (c) gross profit is 37% of sales, and (d) gross profit is 25% of cost. (Round ratios for computational purposes to 1 decimal place, e.g. 78.7% and final answers to 0 decimal places, e.g. 28,987.)

Ending Inventory

Each of the following gross profit percentages is expressed in terms of cost.

Indicate the gross profit percentage in terms of sales for each of the above. (Round answers to 2 decimal places, e.g. 78.73%.)

%

Beginning inventory $ 607,100 Purchases 1,484,500 Total goods available for sale $2,091,600 Sales revenue 2,530,000

Explanation / Answer

Compute the ending inventory :

Indicate the gross profit percentage in terms of sales for each of the above.

Gross profit is 49% of sales Gross profit is 60% of cost Gross profit is 37% of sales Gross profit is 25% of cost Total goods available for sale 2091600 2091600 2091600 2091600 Less: Cost of goods sold (2530000*51%) = (1290300) (2530000*100/160) = (1581250) (2530000*63%) = (1593900) (2530000*100/125) = (2024000) Ending inventory 801300 510350 497700 67600

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