Estimate ending inventory by the gross profit method

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(Learning Objective 5: Estimate ending inventory by the gross profit method) Federal Technology began the year with inventory of $315,000 and purchased $1,820,000 of goods during the year. Sales for the year are $3,920,000, and Federal’s gross profit percentage is 60% of sales. Compute Federal’s estimated cost of ending inventory by using the gross profit method.

Reference no: EM13746441

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