Can you help me solve this general accounting problem with the correct methodology? During the month of March, Ocean view Enterprises hadsales of $500,000 and a cost of goods available for sale of$850,000. The company consistently earns a gross profitrate of 40%. Using the gross profit method, the estimatedinventory at March 31 amounts to:

Step 1: Definition of Gross Profit MethodThe Gross Profit Method estimates ending inventory by…

Answered: During the month of March, Ocean view…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

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Chapter4: Job Order Costing

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Problem 6EB: Langstons purchased $3,100 of merchandise during the month, and its monthly income statement shows a...

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During the month of March, Ocean view Enterprises had sales of $500,000 and a cost of goods available for sale of $850,000. The company consistently earns a gross profit rate of 40%. Using the gross profit method, the estimated inventory at March 31 amounts to: