Fargone Products Began Its Fiscal Year with $38,000 in Inventory

question 13

Multiple Choice

Fargone Products began its fiscal year with $38,000 in inventory at cost and purchased $65,000 of goods during the year. Net sales for the year totalled $150,000. Assuming the company has operated with a 35% average gross profit ratio for a number of years, what is the estimated ending inventory using the gross profit method?

• A) $5,500
• B) $50,500
• C) $103,000
• D) $150,000

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Group Therapy

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Low Cost

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