Nova Wholesalers has sales of $275,000 and the cost of goods available for sale is $210,000. If the gross profit rate is 34.5%, what is the estimated cost of ending inventory using the gross profit method?

Nova Wholesalers has sales of $275,000 and the cost of goods available for sale is $210,000. If the gross profit rate is 34.5%, what is the estimated cost of ending inventory using the gross profit method?

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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Question

I am looking for the correct answer to this general accounting question with appropriate explanations.

Nova Wholesalers has sales of $275,000 and the cost of goods available for
sale is $210,000. If the gross profit rate is 34.5%, what is the estimated cost of
ending inventory using the gross profit method?

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