Presented below is information related to Novak Corporation for the current year

Question

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

Beginning inventory $ 607,100

Purchases 1,484,500

Total goods available for sale $2,091,600

Sales revenue 2,530,000 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

(a) Gross profit is 49% of sales $

(b) Gross profit is 60% of cost $

(c) Gross profit is 37% of sales $

(d) Gross profit is 25% of cost $

Explanation / Answer

Compute ending inventory under Following situation :

Situations (a) gross profit is 49% of sales (b) gross profit is 60% of cost (c) gross profit is 37% of sales (d) gross profit is 25% of cost Beginning inventory 607100 607100 607100 607100 Purchases 1484500 1484500 1484500 1484500 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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