Presentation is loading. Please wait.

Presentation is loading. Please wait.

Estimating Ending Inventory Chapter 6 Section 3. ESTIMATED MERCHANDISE INVENTORY SHEET OPEN TEXTBOOKS PAGE 183 OPEN WORKBOOKS PAGE 255.

Similar presentations


Presentation on theme: "Estimating Ending Inventory Chapter 6 Section 3. ESTIMATED MERCHANDISE INVENTORY SHEET OPEN TEXTBOOKS PAGE 183 OPEN WORKBOOKS PAGE 255."— Presentation transcript:

1 Estimating Ending Inventory Chapter 6 Section 3

2 ESTIMATED MERCHANDISE INVENTORY SHEET OPEN TEXTBOOKS PAGE 183 OPEN WORKBOOKS PAGE 255

3 ESTIMATED MERCHANDISE INVENTORY SHEET Gross Profit Method Handy Harware4/30/05 124, , , , , , , From General Ledger Purchases Minus Purchases Returns and Allowances Minus Purchases Discount Equals Net Purchases to Date Beginning Inventory + Net Purchases to Date From General Ledger Sales Minus Sales Returns and Allowances Minus Sales Discount Equals Net Sales to Date Line 4 X 37% Net Sales to Date – Estimated Gross Profit Merchandise Available for Sale – Estimated Cost of Merchandise Sold

4 ESTIMATED MERCHANDISE INVENTORY SHEET Retail Method Work Together 6-3 Handy Hardware 04/30/05 124, , , , , , , , , Merch avail. for sale at COST/ Merch avail for sale at RETAIL

5 ESTIMATED MERCHANDISE INVENTORY SHEET Complete OYO 6-3 completely and then check answers against computer. Correct errors then turn in

6 ESTIMATED MERCHANDISE INVENTORY SHEET Gross Profit Method Handy Harware 4/30/05 182, , , , , , ,275.80

7 ESTIMATED MERCHANDISE INVENTORY SHEET Retail Method OYO 6-3 Handy Hardware 10/31/05 182, , , , , , , , , Merch avail. for sale at COST/ Merch avail for sale at RETAIL

8 Merchandise Inventory Turnover Ratio 168, , times 173, , January 1 Merchandise Inventory Cost of Merchandise Sold + Merchandise Inventory Turnover Ratio December 31 Merchandise Inventory ÷ 2 = Average Merchandise Inventory ÷ Average Merchandise Inventory = 170,845.00

9 Average Number of Days’ Sales in Merchandise Inventory days5.4 times Days in a Year Merchandise Inventory Turnover Ratio ÷= Average Number of Days’ Sales in Merchandise Inventory


Download ppt "Estimating Ending Inventory Chapter 6 Section 3. ESTIMATED MERCHANDISE INVENTORY SHEET OPEN TEXTBOOKS PAGE 183 OPEN WORKBOOKS PAGE 255."

Similar presentations


Ads by Google