Blue Company on January 1 had inventory costing $65,000 and during January had net purchases of $119,000. Over recent years, Blue's gross profit has averaged 40% on sales. Assuming that the company has net sales of $190,000, calculate the estimated cost of ending inventory by using the gross profit method.

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The Answer of Blue Company on January 1 had inventory costing $65,000 and during January had net purchases of $119,000. Over recent years, Blue's gross profit has averaged 40% on sales. Assuming that the company has net sales of $190,000, calculate the estimated cost of ending inventory by using the gross profit method.

Blue Company on January 1 Had Inventory Costing $65,000 and During