The year-end 2018 balance sheet of Brandex Inc. listed common stock and other paid-in capital at $1,400,000 and retained earning
1 answer:
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Answer:
$60000
Explanation:
Given: Sales = $300000.
Cost of goods available for sale= $270000.
The gross profit ratio= 30%
First finding the gross profit out of total sales.
Gross profit=
Gross profit=
∴ Cost of goods sold=
Cost of goods sold=
Cost of goods sold=
Hence, cost of goods sold=
Now, finding estimated cost of the ending inventory.
Cost of ending inventory=
⇒ Cost of ending inventory=
∴ Cost of ending inventory=
Hence, estimated cost of the ending inventory under the gross profit method would be $60000.