Gross margin on sales was 40 using the gross profit method


Question - The After Five Boutique took in $748,200 in sales during May. They started the month with inventory worth $419,000 and spent $154,800 on new purchases during the month. Gross margin on sales was 40%. Using the gross profit method, estimate the cost value of the inventory at the end of June.

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Accounting Basics: Gross margin on sales was 40 using the gross profit method
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