A Company That Has Operated with a 30% Average Gross

question 73

Multiple Choice

A company that has operated with a 30% average gross profit ratio for a number of years had $110,000 in net sales during the first quarter of this year. If it began thequarter with $28,000 in inventory at cost and purchased $75,000 of merchandise during the quarter, its estimated ending inventory by the gross profit method is:

• A)$25,000.
• B)$26,000.
• C)$21,000.
• D)$20,000.
• E)$24,000.

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Definitions:

Repair Welding Technique

A welding process used to fix cracks, breaks, or gaps in metal parts, often involving the use of specific filler materials and welding methods suited to the material being repaired.

Kingpin

A critical pivot point in the steering mechanism of a vehicle, around which the steerable wheels pivot.

E-7018 Electrode

A type of welding rod designed for all-position welding and produces a very strong, tough weld.

Weld Deposit

The accumulation of welded material on a workpiece during the welding process, forming a joint or adding material to a part.