Gross profit method Based on the following data, estimate the cost of the ending merchandise inventory: sales $9,250,000 estimated gross profit rate 36% Beginning merchandise inventory $ 180,000 Purchases (net) 5,945,000 Merchandise available for sale $6,125,000

Gross profit method Based on the following data, estimate the cost of the ending merchandise inventory: sales $9,250,000 estimated gross profit rate 36% Beginning merchandise inventory $ 180,000 Purchases (net) 5,945,000 Merchandise available for sale $6,125,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Gross profit method

Based on the following data, estimate the cost of the ending merchandise inventory:

sales	$9,250,000
estimated gross profit rate	36%
Beginning merchandise inventory	$ 180,000
Purchases (net)	5,945,000
Merchandise available for sale	$6,125,000

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