Based on the Following Data, Estimate the Cost of Ending

question 87

Essay

Based on the following data, estimate the cost of ending merchandise inventory using the gross profit method. $\begin{array}{lr}\text { Sales } & \$ 250,000 \\\text { Estimated gross profit rate } & 25 \%\\\text { Beginning merchandise inventory } & \$ 9,000 \\\text { Purchases (net) } & 211,000 \\\text { Merchandise available for sale } & \$ 220,000\end{array}$

---

Definitions:

Parametric Counterpart

Statistical methods or models that assume the data comes from a population that can be characterized by a set of parameters.

Friedman Test

A non-parametric test used to detect differences in treatments across multiple test attempts, especially for matched or paired subjects.

Kruskal-Wallis Test

A statistical test that determines if three or more independent samples come from populations with the same distribution, using ranking methods.

Alternative Hypothesis

In hypothesis testing, it is the statement that contradicts the null hypothesis, asserting that there is a significant difference or effect.