Sarabjit Inc

question 84

Essay

Sarabjit Inc. produced the following information for December, 2012:
Required:
NOTE THAT EACH REQUIREMENT IS INDEPENDENT OF THE OTHERS.
a)Determine if any of the transactions near year-end should be included in the December 31, 2012 inventory balance.
b)Determine if there is any impairment of inventory at December 31, 2012.
c)Determine the cost of goods sold for December 2012.
d)The company has a historical gross margin of 25%. If sales were $400,000, what should ending inventory be at December 31, 2012?

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Definitions:

Rival

A rival is a competitor or opponent who is in contention with another for the same objective or for superiority in the same field.

Differentiation Strategy

A business approach focusing on developing and marketing unique products or services to stand out from competitors and attract customers.

Market Niche

A specific segment of the market that a business targets, often characterized by unique preferences or needs.

Broader Market

Describes the extensive and wider aspects of the market, encompassing a large range of products, services, and customers.