Question - When preparing its quarterly financial statements, Pace Co. uses the gross margin method to estimate ending inventory. The following information is available for the 1st quarter of 2016:
Beginning inventory $227,000
Purchases $814,000
Sales $1,151,000
Estimated gross margin percentage 45%
What was Pace's estimated inventory on March 31, 2016? (Do not round your intermediate calculations.)
$407,950
$633,050
$572,550
$468,450