Fargone Products began its fiscal year with $38,000 in inventory at cost and purchased $65,000 of goods during the year. Net sales for the year totaled $150,000. Assuming the company has operated with a 35% average gross profit ratio for a number of years, what is the estimated ending inventory using the gross profit method?

Answer rating: 100% (QA)

First we calculate the cost of goods sold COGS using the formula ... View the full answer