What is the estimated cost of the ending inventory Helix Retailers has sales of $215,000 and thecost of goods available for sale is $176,500. Ifthe gross profit rate is 36.2%, what is theestimated cost of the ending inventory usingthe gross profit method?

Step 1: Definition of Gross Profit MethodThe gross profit method is used to estimate the cost of…

Answered: Helix Retailers has sales of $215,000…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter13: Accounting For Merchandise Inventory

Section: Chapter Questions

Problem 4CE: Kulsrud Company would like to estimate the current inventory level. Using the gross profit method...

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Kulsrud Company would like to estimate the current inventory level. Using the gross profit method and the following information, estimate the current inventory level for Kulsrud Company. Goods available for sale 100,000 Net sales 150,000 Normal gross profit as a percent of sales 40%
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Helix Retailers has sales of $215,000 and the cost of goods available for sale is $176,500. If the gross profit rate is 36.2%, what is the estimated cost of the ending inventory using the gross profit method?