estimating ending inventory chapter 6 section 3. estimated merchandise inventory sheet open...
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Estimating Ending Estimating Ending InventoryInventory
Chapter 6Chapter 6
Section 3Section 3
ESTIMATED MERCHANDISE ESTIMATED MERCHANDISE INVENTORY SHEETINVENTORY SHEET
OPEN TEXTBOOKS
PAGE 183
OPEN WORKBOOKS
PAGE 255
ESTIMATED MERCHANDISE INVENTORY SHEETESTIMATED MERCHANDISE INVENTORY SHEET
Gross Profit MethodGross Profit Method
Handy Harware 4/30/05
124,850.00
73,230.00198,080.00
138,500.0051,245.00
87,255.00
110,825.00
From General LedgerFrom 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 SHEETESTIMATED MERCHANDISE INVENTORY SHEET
Retail MethodRetail MethodWork Together 6-3Work Together 6-3
Handy Hardware 04/30/05
124,850.0073,230.00198,080.00
107,736.48
65.2
138,500.00165,240.00
193,400.00110,340.00303,740.00
Merch avail. for sale at COST/ Merch avail for sale at RETAIL
ESTIMATED MERCHANDISE ESTIMATED MERCHANDISE INVENTORY SHEETINVENTORY SHEET
Complete OYO 6-3 completely and then check answers against computer.
Correct errors then turn in
ESTIMATED MERCHANDISE INVENTORY SHEETESTIMATED MERCHANDISE INVENTORY SHEET
Gross Profit MethodGross Profit Method
Handy Harware 4/30/05
182,570.00
115,440.00298,010.00
204,340.0075,205.80
128,734.20
169,275.80
ESTIMATED MERCHANDISE INVENTORY SHEETESTIMATED MERCHANDISE INVENTORY SHEET
Retail MethodRetail MethodOYO 6-3OYO 6-3
Handy Hardware 10/31/05
182,570.00
115,440.00298,010.00
167,647.2663.8
204,340.00262,770.00
276,380.00
190,730.00467,110.00
Merch avail. for sale at COST/ Merch avail for sale at RETAIL
Merchandise Inventory Turnover Ratio
168,365.00 170,845.00
5.4 times
173,325.00
925,368.00
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
365 68 days5.4 times
Days in a Year
Merchandise Inventory
Turnover Ratio÷ =
Average Number of Days’ Sales in
Merchandise Inventory