Question

Presented below is information related to Nash Corporation for the current year. $589,900 1,483,300 Beginning inventory Purchases Total goods available for sale Sales revenue $2,073,200 2,400,000 Compute the ending inventory, assuming that (a) gross profit is 44% of sales, (b) gross profit is 60% of cost, (c) gross profit is 38% of sales, and (d) gross profit is 25% of cost. (Round ratios for computational purposes to 1 decimal place, e.g. 78.7% and final answers to 0 decimal places, e.g. 28,987.) Ending Inventory (a) Gross profit is 44% of sales $ (b) Gross profit is 60% of cost $ (c) Gross profit is 38% of sales $ (d) Gross profit is 25% of cost $

Answer 1

Ending inventory = Cost of Goods available for sale - Cost of Goods Sold

A)

= 2,073,200 - (2,400,000*56%)

= 729,200

B)

= 2,073,200 - (2,400,000*100/160)

= 573,200

C)

= 2,073,200 - (2,400,000*62%)

= 585,200

D)

= 2,073,200 - (2,400,000*100/125)

= 153,200