Calculate Estimated Cost of Ending Inventory Using the Gross Profit

Short Answer

Calculate estimated cost of ending inventory using the gross profit method:
$$\begin{array} { | l | l | } \hline \text { Gross profit on sales } & 40 \% \\\hline \text { Beg inventory Aug 1, 2017 } & \$ 38,000 \\\hline \text { Net purchases } & \$ 9,900 \\\hline \text { Net sales at retail for June } & \$ 27,000 \\\hline\end{array}$$