Chapter 6, Problem 24Q

To determine

Gross Profit Percentage:

Gross profit percentage is the financial ratio that shows the relationship between the gross profit and net sales. It represents gross profit as a percentage of net sales. Gross Profit is the difference between the net sales revenue, and the cost of goods sold. It can be calculated by using the following formula: $\text{Gross Profit percentage}=\frac{\text{Gross profit}}{\text{Net sales}}\times 100$

$\text{Gross Profit percentage}=\frac{\text{Gross profit}}{\text{Net sales}}\times 100$

To Compute: The estimated cost of the ending inventory of Company W by assuming the gross profit at 35%.