Chapter 7, Problem 7.27EX

### Accounting

27th Edition
WARREN + 5 others
ISBN: 9781337272094

Chapter
Section

### Accounting

27th Edition
WARREN + 5 others
ISBN: 9781337272094
Textbook Problem

# Gross profit methodBased on the following data, estimate the cost of the ending merchandise inventory: Sales $9,250,000 Estimated gross profit rate 36% Beginning merchandise inventory$ 180,000 Purchases (net) 5,945,000 Merchandise available for sale \$6,125,000

To determine

Gross profit method

This method is use the estimated gross profit for the period to evaluate and ascertain the ending inventory for the period. The gross profit for the period is calculated from the preceding year, which is adjusted for any current period changes in the sales and cost price of the inventory.

To estimate: cost of ending merchandise inventory.

Explanation

The estimated cost of merchandise sold is calculated by deducting the estimated gross profit from the sales. The estimated gross profit is determine...

### Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

#### The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started