Question

Net sales, first month $13,000 Normal gross profit as a percentage of sales 45% Inventory, start of period $8,000 Net purchases, first month $7,000 Using the gross profit method of inventory estimation, the amount of normal gross profit would be

Answer 1

Answer: $5,850‬

Step-by-step explanation:

The Normal Gross Profit under the gross profit method of inventory estimation is the growth profit percentage of sales multiplied by the sales figure.

= Net Sales * Gross Profit percentage

= 13,000 * 0.45

= $5,850‬