Kelly Company on April 1, 201X, had inventory costing $33,000 and during April had net purchases of

Question:

Kelly Company on April 1, 201X, had inventory costing $33,000 and during April had net purchases of $68,000. Over the years, Kelly Company’s gross profit averaged 40% on sales. Given that the company has net sales of $107,500, calculate an 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 =...

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