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Residential Technology began the year with inventory of $275,000 and purchased $1,450,000 of goods during...

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Accounting

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Residential Technology began the year with inventory of $275,000 and purchased $1,450,000 of goods during the year. Sales for the year are $2,600,000, and Residential Technology's gross profit percentage is 40% of sales. Compute Residential Technology's estimated cost of ending inventory by using the gross profit method First, calculate the cost of goods available. Then calculate the estimated cost of ending inventory Beginning inventory $ 275,000 Purchases 1,850,000 Cost of goods available 2.125,000 Estimated cost of goods sold: Net sales revenue 2125000 Less: Estimated gross profit of 40% 1040000 1275000 Estimated cost of goods sold Estimated cost of ending inventory 850000

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