Lisa Company on October 1, 201X, had inventory costing $33,500 and during October had net purchases of

Question:

Lisa Company on October 1, 201X, had inventory costing $33,500 and during October had net purchases of $67,200. Over the years, Lisa Company’s gross profit averaged 38% on sales. Given that the company has net sales of $108,000, calculate an estimated cost of 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 =...