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Gross Profit Method for Inventory Estimation by Griselda Ayu is a document available to read on EtoBox.
The gross profit method can be used to estimate ending inventory when inventory records are destroyed. It relies on the assumptions that beginning inventory plus purchases equals total goods, goods not sold remain in inventory, and sales reduced to cost deducted from total goods equals ending inventory. For a company with a beginning inventory of €60,000, purchases of €200,000, and sales of €280,000 at a 30% gross profit, the estimated ending inventory is €64,000. The gross profit percentage can be calculat
- Author
- Griselda Ayu
- Language
- EN