Question - Energy Solutions Corporation estimates the cost of its physical inventory at November 30 for use in an interim financial statement. Management uses a gross profit rate on sales of 40%. The following information is available:
Inventory, November 1 - $500,000
Purchases during November - $650,000
Sales during November - $900,000
Compute the estimated cost of inventory at November 30?
$360,000
$540,000
$610,000
$650,000