Inland Lumber began the year with inventory of $52,200 and made purchases of $316,700 during the year.

Question:

Inland Lumber began the year with inventory of $52,200 and made purchases of $316,700 during the year. Sales for the year are $503,800, and Inland Lumber’s gross profit percentage is 42% of sales.

Compute Inland Lumber’s estimated cost of ending inventory using the gross profit method.

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...