Aubergine Industries Had Beginning Inventory of $10,000 and Purchased $75,000

question 19

Multiple Choice

Aubergine Industries had beginning inventory of $10,000 and purchased $75,000 of merchandise during 2020.The company had sales of $90,000 and has traditionally had a cost-to-sales ratio of 75%.Using the gross margin estimation method,the company estimates its ending inventory to be

• A)$67,500.
• B)$65,000.
• C)$17,500.
• D)$22,500.

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Definitions:

Defined Contribution Plans

Retirement plans in which employees contribute a fixed amount or percentage of their salaries, and the final benefits depend on the plan's investment performance.

Mandatory Benefits

Benefits that employers are legally required to provide to their employees, including social security, workers' compensation, and unemployment insurance.

Total Compensation

The complete pay package for employees, including all forms of money, benefits, services, and in-kind payments.

Wages

Compensation paid to employees based on the hours worked, typically expressed as an hourly rate.