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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,
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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

User Gabriel Garrett
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1 Answer

7 votes

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

User Chuck M
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