Answer:
$205,000
Explanation:
Given that,
Sales = $9,250,000
Estimated gross profit rate = 36%
Beginning merchandise inventory = $180,000
Purchases (net) = $5,945,000
Merchandise available for sale = $6,125,000
Estimated cost of merchandise sold:
= Sales(net) - Gross profit
= $9,250,000 - (36% × $9,250,000)
= $9,250,000 - $3,330,000
= $5,920,000
Cost of Ending Merchandise Inventory:
= Merchandise available for sale - Estimated cost of merchandise sold
= $6,125,000 - $5,920,000
= $205,000
