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mr Goodwill [35]
3 years ago
7

Viewpoint Company’s October 31 inventory was destroyed by fire. The company’s beginning inventory was $500,000, and purchases fo

r January through October were $1,200,000. Sales for the same period were $1,800,000. The company’s normal gross profit percentage is 30% of sales. Using the gross profit method, the October 31 inventory is estimated to be $300,000. $40,000. $540,000. $440,000.
Mathematics
1 answer:
trasher [3.6K]3 years ago
5 0

Answer:

$440,000

Step-by-step explanation:

                                           Sales : $1,800,000

Gross profit : (30% × 1,800,000) :   $540,000

Cost of goods sold (Sales-profit) : $1260,000

Beginning inventory   :   $500,000

Purchasing                  : $1,200,000

Total                            :  $1,700,000

Goods sold (subtract) : $1,260,000

Closing inventory       :   $440,000

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