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Andrej [43]
3 years ago
11

Jefferson Company has sales of $306,000 and cost of goods available for sale of $270,600. If the gross profit ratio is typically

30%, the estimated cost of the ending inventory under the gross profit method would be:
Business
1 answer:
Mice21 [21]3 years ago
6 0

Answer:

$56,400

Explanation:

Jefferson company has a sales of $306,000

The cost of goods available for sale is $270,600

The first step is to calculate the gross profit

= 306,000 × 30/100

= 306,000 × 0.3

= 91,800

The cost of goods sold can be calculated as follows

= $306,000-91,800

= $214,200

Therefore the estimated cost of ending inventory under the gross profit method can be calculated as follows

= $270,600-214,200

= $56,400

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