Estimating ending inventory (Learning Objective 7) 10–15 min.

Haskin’s Wholesale began the year with inventory of $51,600 and made purchases of

$326,800 during the year. Sales for the year are $505,300, and Haskin’s Wholesale’s gross profit percentage is 38% of sales.

Compute Haskin’s Wholesale’s estimated cost of ending inventory using the gross profit method.

AppendixLO1