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S6–14 Magic Carpets began the year with inventory of $1,400,000. Inventory purchases for the year totalled $3,200,000. Sales revenue for the year was $7,000,000, and the gross margin was 45 percent. How much is Magic Carpets’ estimated cost of ending inventory? Use the gross margin method.
E6–11 Kelso Electrical’s inventory records for industrial switches indicate the following at November 30, 2020: Nov. 1 Beginning inventory 14 units at $160 8 Purchase 4 units at $170 15 Purchase 11 units at $180
26 Purchase 5 units at $200 The physical count of inventory at November 30, 2020, indicates that six units remain in ending inventory and the company owns them. Required Compute ending inventory and cost of goods sold using each of the following methods, assuming a periodic inventory system is used: Specific-unit cost, assuming three $170 units and three $180 units are on hand on November 30, 2020 Weighted-average cost First-in, first-out (FIFO)

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