(Gross Profit Method) Presented below is information related to Jerrold Corporation for the current year.
|
Beginning inventory |
$ 600,000 |
|
|
Purchases |
1,500,000 |
|
|
Total goods available for sale |
$2,100,000 |
|
|
Sales |
2,300,000 |
Instructions
Compute the ending inventory, assuming that (a) gross profit is 40% of sales; (b) gross profit is 60% of cost; (c) gross profit is 35% of sales; and (d) gross profit is 25% of cost.