Glass Company began the year with inventory of $42,450 and purchased $263,000 of goods during the year.

Question:

Glass Company began the year with inventory of $42,450 and purchased $263,000 of goods during the year. Sales for the year are $501,000, and Glass’s gross profit percentage is 55% of sales.
Requirement
1. Compute the estimated cost of by 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 =...