Quality-Value, Inc

question 6

Multiple Choice

Quality-Value, Inc. maintains a gross margin of 75% on all of its merchandise. In September the company had a beginning inventory of $604,900, net purchases of $186,900, and net sales of $487,600. Use the gross profit method to estimate the cost of ending inventory as of September 30.

• A) $200,561
• B) $418,300
• C) $691,800
• D) $669,900

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Definitions:

Melanoma

A form of skin cancer originating in the melanocytes, the cells responsible for pigment production.

Pediculosis

The medical term for lice.

UV Radiation

Ultraviolet radiation; a type of energy emitted by the sun and artificial sources, which can cause skin damage, including sunburn and skin cancer.

Melanin

A pigment found in the skin, hair, and eyes of humans and animals, responsible for coloration and protection against UV radiation.