Jefferson Company Has Sales of $300,000 and Cost of Goods

Multiple Choice

Jefferson Company has sales of $300,000 and cost of goods available for sale of $270,000. If the gross profit ratio is typically 30%, the estimated cost of the ending inventory under the gross profit method would be:

A) $90,000
B) $120,000
C) $180,000
D) $60,000
E) $30,000