Mac's Hardware's Gross Profit on Sales Is 40

question 22

Multiple Choice

Mac's Hardware's gross profit on sales is 40%. At the beginning of January, cost of inventory was $18,000. During one month, Mac had net purchases of $42,000. Net sales at retail for the month were $49,000. The estimated cost of ending inventory using the gross profit method is:

• A)$30,600
• B)$29,400
• C)$60,000
• D)$42,000
• E)None of these

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Definitions:

Methanol

A light, volatile, colorless liquid with a distinctive alcoholic odor, used as an antifreeze, solvent, fuel, and as a denaturant for ethanol.

Ka

An abbreviation for acid dissociation constant, a quantitative measure of the strength of an acid in solution, representing the equilibrium constant of its dissociation.

Conjugate Acid

A species formed by the reception of a proton (H+) by a base, related to its conjugate base by the difference of one hydrogen atom.

Ethanol

A two-carbon alcohol, commonly known as alcohol, with the chemical formula C2H5OH, used as a solvent, fuel, and in beverages.