Question Modi Electronics is using the Gross ProfitMethod to estimate its ending inventory. Thecompany's current year sales and cost ofinventory available for sale are $850,000 and$620,000, respectively. The company'shistorical gross profit percentage is 35%.What is the estimated ending inventory?

Step 1: Calculation of Cost of Goods SoldGross Profit = Sales × Gross Profit PercentageGross Profit…

Answered: Modi Electronics is using the Gross…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 2TP: Assume your company uses the periodic inventory costing method, and the inventory count left out an...

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Modi Electronics is using the Gross Profit Method to estimate its ending inventory. The company's current year sales and cost of inventory available for sale are $850,000 and $620,000, respectively. The company's historical gross profit percentage is 35%. What is the estimated ending inventory?