**Big Box Store Inventory Calculation Problem****Scenario:**Big Box Store has consistently operated with a 30% average gross profit ratio over several years. During the second quarter of this year, the store achieved $102,000 in net sales. At the start of the quarter, the inventory at cost was $18,200, and additional inventory purchases amounted to $72,200. Using the gross profit method, estimate the ending inventory for the quarter.**Multiple Choice Options:**- $30,600- $24,420- $19,000- $18,200- $27,600**Instructions:**Calculate the ending inventory using the provided data and the gross profit method to select the correct answer.

Ending inventory is the amount of inventory left with the entity at the end of the period, It is…

Big Box Store has operated with a 30% average gross profit ratio for a number of years. It had $102.000 in net sales during the second quarter of this year. If it began the quarter with $18.200 of inventory at cost and purchased $72,200 of inventom during the quarter, its estimated ending inventory by the gross profit method is: Multiple Choice O O $30.600 $21,420 $19,000 $18.200 $27,600

Big Box Store has operated with a 30% average gross profit ratio for a number of years. It had $102.000 in net sales during the second quarter of this year. If it began the quarter with $18.200 of inventory at cost and purchased $72,200 of inventom during the quarter, its estimated ending inventory by the gross profit method is: Multiple Choice O O $30.600 $21,420 $19,000 $18.200 $27,600

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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