Unifying Concepts: Inventory Estimation Method McCarlie Clothing Store has the following information available

Required:
1. On the basis of this information, estimate the cost of inventory on hand at March 31, 2009, using the gross margin method. Round to the nearest whole percent.
2. How accurate do you think this method is?

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Purchases during March 2009 Inventory balance, March 1, 2009 Sales during March Average gross margin rate for the last three years Cost Selling Price Other $215,000 $400,000 60,000 95,000 510,000 52%