Thorston Industries began the year with inventory of $80,000 and purchased $350,000 of goods during the year.

Question:

Thorston Industries began the year with inventory of $80,000 and purchased $350,000 of goods during the year. Sales for the year are $600,000, and Thorston Industries' gross margin is 45 percent of sales. Compute the estimated cost of ending inventory by the gross margin method.

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...