Question: Use the following data to compute the estimated inventory cost for Strathe Company under the gross profit method: Average gross profit rate: 30% of sales

Use the following data to compute the estimated inventory cost for Strathe Company under the gross profit method:

Average gross profit rate: 30% of sales

Inventory on January 1 (at cost): $230,000

Purchases from January 1 to date of inventory estimate: $1,040,000

Net sales for period: $1,300,000

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