Given This Information, What Is the Amount of Cash Paid

question 2

Multiple Choice

Given this information, what is the amount of cash paid for wages?

• A) $34,000
• B) $35,000
• C) $36,000
• D) $22,000

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Definitions:

Cost Ratio

A measure used to evaluate the efficiency and profitability of a company, calculated as the cost of goods sold divided by net sales.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated for cost of goods sold and financial reporting purposes.

Retail Method

An accounting method used to estimate inventory value, calculated by adding the cost of goods purchased to the cost of the opening inventory and then subtracting the cost of goods sold.

Estimated Ending Inventory

A projection of the value of goods a company has available for sale at the end of an accounting period, based on calculations or formulas.