Answer:
$653,000
Explanation:
When using the gross profit approach, the first step is to calculate the cost of goods available for sale
cost of goods available for sale is Beginning stock for plus purchases
For Mohawk industries
Beginning stock is $750,000
purchases in the month $215,000
Goods available for sales $965,000
If the sales were $480,000
gross profits 35% of sales
The gross profits was 35/100 x 480,000
= $168,000
The cost of goods sold was
=$480,000 -$168,000
=$312,000
Costs of goods available for sale is $965,000
The costs of goods sold are $312,000
estimated ending inventory is $965,000 -$312,000
=$653,000
