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

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Presentation transcript:

Estimating Ending Inventory Chapter 6 Section 3

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

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

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

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

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

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

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

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