The gross profit method produces a reasonably accurate result as long as the historical gross profit

The gross profit method produces a reasonably accurate result as long as the historical gross profit

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The gross profit method produces a reasonably accurate result as long as the historical gross profit  margin still applies to the current period. However, increasing competition, new market conditions,  and other factors may cause the historical gross profit margin to change over time. Retail inventory method.  Retail businesses track both the cost and retail sales price of inventory. 
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Unformatted text preview: This information provides another way to estimate ending inventory. Suppose a retail store wants to estimate the cost of ending inventory using the information shown below. Cost Retail Beginning Inventory $ 49,000 80,000 Purchases 209,000 350,000 Goods Available for Sale $ 258,000 430,000 Net Sales $ 400,000...
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This note was uploaded on 11/14/2011 for the course ACCT 1310 taught by Professor Staff during the Fall '10 term at Texas State.

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