On March 31 a Company Needed to Estimate Its Ending

question 66

Multiple Choice

On March 31 a company needed to estimate its ending inventory to prepare its first quarter financial statements. The following information is available: Beginning inventory, January 1: $4,000 Net sales: $80,000
Net purchases: $78,000
The company's gross margin ratio is 25%.
-Using the gross profit method, the cost of goods sold would be:

• A) $19,500.
• B) $63,000.
• C) $60,000.
• D) $58,500.
• E) $20,000.

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Definitions:

Genuineness

The quality of being authentic, sincere, and honest in one's interactions and presence.

Tense/relaxed Continuum

A conceptual scale that describes the varying degrees of tension or relaxation present in an individual, situation, or environment.

Discrimination

Unfair or prejudicial treatment of individuals or groups based on characteristics such as race, gender, age, or sexual orientation.

Oppression

The systemic and pervasive mistreatment of individuals or groups by others who hold more power.