Question: Sandoval needs to determine its year - end inventory. The warehouse contains 2 0 , 0 0 0 units, of which 3 , 0 0

Sandoval needs to determine its year-end inventory. The warehouse contains 20,000 units, of which 3,000 were damaged by flood and are not sellable. Another 2,000 units were purchased from Markor Company, FOB shipping point, and are currently in transit. The company also consigns goods and has 4,000 units at a consignee's location. How many units should Sandoval include in its year-end inventory?
Net purchases: $87,000
The company's gross profit ratio is 25%. Using the gross profit method, the estimated ending inventory value would be:

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