On March 31 a company needed to estimate its ending inventory to prepare its first quarter financial statements. The following information is available:Beginning inventory, January 1: $5800Net sales: $87,000Net purchases: $85,000The company's gross margin ratio is 30%. Using the gross profit method, the estimated ending inventory value would be:
A. $25,500.
B. $26,100.
C. $60,900.
D. $90,800.
E. $29,900.
Answer: E
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