Ending inventory by using the gross profit method


A company that has operated with a 30% average gross profit ratio for a number of years had $100,000 in sales during the first quarter of this year. If it began the quarter with $18,000 of inventory at cost and purchased $72,000 of inventory during the quarter, its estimated ending inventory using the gross profit method is:

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Accounting Basics: Ending inventory by using the gross profit method
Reference No:- TGS081415

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