Presented below is information related to Isaac Corporation for the current year.
Beginning inventory $ 400,000
Purchases 2,600,000
Total goods available for sale $3,000,000
Sales 3,500,000
Instructions
Compute the ending inventory, assuming that (a) gross profit is 25% of sales; (b) gross profit is 50% of cost; (c) gross profit is 40% of sales; and (d) gross profit is 25% of cost.