Answer:
Balance closing inventory = $107000
so correct option is a. $107,000
Explanation:
given data
inventory cost = $145,000
purchased inventory cost = $53,000
sales totaled = $140,000
gross profit = 35%
to find out
estimated ending inventory
solution
we know Opening inventory cost i.e $145000 and purchases inventory cost i.e $53000
so both will be = $145000 +$53000 = $198000
and
Cost of goods sold will be
Cost of goods sold = 35% of sales totaled
Cost of goods sold = 35% × $140,000
Cost of goods sold = $91000
so
Balance closing inventory = Opening inventory cost + purchases inventory cost - Cost of goods sold
Balance closing inventory = $198000 - $91000
Balance closing inventory = $107000
so correct option is a. $107,000
