Question

A key component of estimating the amount of ending inventory is to determine the gross margin percentage for prior years. The gross margin percentage is calculated by

Answer 1

The key component of estimating the amount of ending inventory is to determine the gross margin percentage for prior years.

Step-by-step explanation:

The key component of estimating the amount of ending inventory is to determine the gross margin percentage for prior years. The gross margin percentage is calculated by dividing the gross margin by the net sales and multiplying by 100.