Miller Company Needs an Estimate of Its Ending Inventory Balance

question 77

Multiple Choice

Miller Company needs an estimate of its ending inventory balance. The following information is available:
$\begin{array}{ll}&\text { Cost } & \text { Retail } \\\text {Sales revenue }&\\\text {Beginning inventory }&\$ 35,000 & \$ 180,000 \\\text {Net purchases }&100,000 & 62,000 \\\text {Grosssmargin percentage }&30 \% & 135,000\end{array}$
Given this information, when using the gross margin estimation method, ending inventory is approximately

• A) $1,000.
• B) $9,000.
• C) $19,000.
• D) $11,650.

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Definitions:

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Products produced by one company that another company rebrands to appear as if they had made it.

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