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Business, 06.07.2021 16:30 sydc1215

The Dormer Company uses the gross profit method to estimate its inventory in interim financial statements. The markup on cost is 50%. The following information is available: January 1, 2016, inventory balance $12,500
Purchases 25,000
Sales during January 24,000
Refer to Exhibit 8-2. The estimated cost of goods sold at January 31, 2016, is:
a. $21,500
b. $25,500
c. $12,000
d. $16,000

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