# Using the gross margin method, what is the estimated ending inventory?

Anonymous
timer Asked: Oct 19th, 2014

Question description

A firm has beginning inventory of \$50,000 and purchases of \$290,000 for an accounting period. Sales totaled \$400,000, and typical gross margin as a percentage of sales has been 30%. Using the gross margin method, what is the estimated ending inventory?

 A. \$60,000 B. \$75,000 C. \$90,000 D. \$120,000

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