Question
Riverbed Corporation's retail store and warehouse closed for an entire weekend while the year-end inventory was counted. When the count was fished, the controller
Riverbed Corporation's retail store and warehouse closed for an entire weekend while the year-end inventory was counted. When the count was fished, the controller gathered all the counts and w from the clerical staff, completed the ending inventory calculations, and prepared the following partial income statement for the general manager for Monday morning Sales Beginning inventory Purchases $2,749,000 5 653,000 1,550,000 Total goods available for sale 2,203,000 Less ending inventory Cost of goods sold Grow profit 653,000 1,550,000 $1,199,000 The general manager called the controller into her office after quickly reviewing the preliminary statements. "You've made an error in the inventory," she stated. "My pricing all year has been confully omlet na provide a gross profit of 35%, and I know the sales are correct." (a) How much should the ending inventory have been? Expected ending inventory $
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