Answer:
$320,000
Explanation:
Given;
gross profit margin = 30%
Sep. 1 Merchandise inventory = $125,000
Sep. 1-30 Purchases (net) = $300,000
Sep. 1-30 Sales (net) = $150,000
Sep. 30 Merchandise inventory = ?
Gross profit margin = gross profit/sales
gross profit = 30% × 150,000
= $45,000
Cost of goods sold = Sales - gross profit
= $150,000 - $45,000
= $105,000
Opening inventory + purchases - cost of goods sold = Closing inventory
Closing inventory = $125,000 + $300,000 - $105,00
= $320,000
The estimated cost of the merchandise inventory on September 30 = $320,000
