Wholesale Granite began the year with inventory of $52,800 and made purchases of $318,000 during the year.

Question:

Wholesale Granite began the year with inventory of $52,800 and made purchases of $318,000 during the year. Sales for the year are $504,100, and Wholesale Granite’s gross profit percentage is 41% of sales.

Compute Wholesale Granite’s estimated cost of using the gross profit 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 =...