On March 31 a Company Needed to Estimate Its Ending

question 168

Multiple Choice

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: $4,000
Net sales: $80,000
Net purchases: $78,000
The company's gross margin ratio is 25%.Using the gross profit method,the estimated ending inventory value would be:

• A)$82,000.
• B)$60,000.
• C)$20,000.
• D)$22,000.
• E)$19,500.

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Definitions:

Permeability

A measure of how easily fluids can flow through a porous rock or material.

Uncompacted Clays

Clay material that has not been subjected to pressure, typically soft and easily deformed, often leading to stability issues in construction.

Porosity

The measure of empty spaces within rocks or soil, determining their ability to absorb and hold water or other fluids.

Permeability

The measure of how easily fluids can pass through a material's pore spaces or fractures.