BE estimating gross profits

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Presentation transcript:

BE 6-11- estimating gross profits At May 31, Creole Company has net sales of $330,000 and cost of goods available for sale of $230,000. In excel, compute the estimated cost of the ending inventory, assuming the gross profit rate is 35%. Use the formula below. Hint: Estimated gross profit is calculated as follows: Gross profit rate X net sales

BE 6-12- estimating retail inventory On June 30, Fabre Fabrics has the following data pertaining to the retail inventory method: Goods available for sale at cost are $35,000 & Goods available for sale at retail are $50,000; net sales are $40,000. In excel, compute the estimated cost of the ending inventory using the retail inventory formula below.

Estimating Inventories Inventory turnover measures the number of times on average the inventory is sold during the period. Cost of Goods Sold Inventory Turnover = Average Inventory (beginning + ending)/ how many #s you added up Days in inventory measures the average number of days inventory is held. Days in Year (365) Days in Inventory = Inventory Turnover SO 6 Compute and interpret the inventory turnover ratio.