R K Landscaping and Nursery began November with inventory

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E6-29 Estimating ending inventory by the gross profit method [10–15 min]

R K Landscaping and Nursery began November with inventory of $46,800. During
November, R K made net purchases of $33,900 and had net sales of $61,800. For the
past several years, R K’s gross profit has been 45% of sales.

Requirement

1. Use the gross profit method to estimate the cost of the ending inventory for
November.