Featherstone Dollar Stores Uses the Periodic Inventory, and Completes a Physical

question 76

Essay

Featherstone Dollar Stores uses the periodic inventory, and completes a physical count of inventory annually and adjusts inventory to actual at each year end. For quarterly (interim) financial statements, they use the gross profit method to estimate inventory. The average of the actual gross profit margin for the most recent two years is used to estimate the quarter-end inventory. The average gross profit margin for the years ending December 31, 2012 and 2013 was 26%.
For Quarter 1, 2014, the following sales and purchases data is available: Instructions
Prepare Featherstone's multi-step income statement for the three months ended March 31, 2014, and calculate the estimated inventory at March 31, 2014.

---

Definitions:

Programmer-Created Identifiers

Programmer-created identifiers are unique names defined by programmers for variables, functions, and other elements within a codebase.

Standard

An agreed-upon set of guidelines, criteria, or requirements that dictate certain practices or technical specifications.

Primitive

Basic data types provided by a programming language as building blocks for more complex data types.

Executable Statements

Instructions in a program that perform actions, such as assigning values, calling functions, or looping through data.