Jefferson Company has sales of $307,000 and cost of goods available for sale of $270,700. If the gross profit ratio is typically 30%, the estimated cost of the ending inventory under the gross profit method would be:
-$55,800
-$178,600
-$36,300
-$92,100
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The estimated cost of the ending inventory under the gross profit method would be $92,100. This is calculated by subtracting the gross profit (calculated by sales multiplied by the gross profit ratio of 30%) from the cost of goods available for sale, which equals: $307,000 x 30% = $91,100 $270,700 - $91,100 = $92,100.