During August, the first month of the fiscal year, sales totaled $650,000 and the cost of merchandise available for sale totaled $450,000. Estimate the cost of the merchandise inventory as of August 31, based on an estimated gross profit rate of 40%.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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During August, the first month of the fiscal year, sales totaled $650,000 and the
cost of merchandise available for sale totaled $450,000. Estimate the cost of
the merchandise inventory as of August 31, based on an estimated gross
profit rate of 40%.
Transcribed Image Text:During August, the first month of the fiscal year, sales totaled $650,000 and the cost of merchandise available for sale totaled $450,000. Estimate the cost of the merchandise inventory as of August 31, based on an estimated gross profit rate of 40%.
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