Under the gross profit method, each of the following items are estimated except for the

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The gross profit method estimates the cost of goods sold using the gross profit percentage (percentage of sales that is gross profit), which is calculated by dividing gross profit by sales. Once the cost of goods sold is estimated, the cost of ending inventory can be calculated by subtracting the estimated cost of goods sold from the cost of goods available for sale (beginning inventory + cost of goods purchased). Therefore, the cost of ending inventory and gross profit are estimated using the gross profit method, while the cost of goods purchased is a known value and not estimated.

Under the Gross Profit Method, Each of the Following Items