Contemporary Mathematics for Business & Consumers 8th Edition by Robert Brechner,Geroge Bergeman

Exercise 15

Rambo Plumbing Supply maintains a gross margin of 40% on all of its kitchen sinks and faucet set. In November, Rambo had a beginning inventory of $178,400, net purchases of $91,200, and net sales of $215,800. Use the gross profit method to estimate the cost of ending inventory.