The Following Data Is Available -Using the Gross Profit Method,the Estimated Ending Inventory Balance Would

question 8

Multiple Choice

The following data is available: $$\begin{array} { | r | r | } \hline \text { Net sales, first month } & \$ 13,000 \\\hline \text { Normal gross profit } & 45 \% \\\hline \text { Beginning inventory } & 8,000 \\\hline \text { Net purchases } & 7,000 \\\hline\end{array}$$
-Using the gross profit method,the Estimated ending inventory balance would be:

• A) $15,000.
• B) $7,150.
• C) $7,850.
• D) $5,850.

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Definitions:

Bakery

A place where bread, cakes, cookies, and other bakery products are made or sold.

Gross Domestic Product

The total monetary value of all final goods and services produced within a country's borders in a specific time period.

Consumer Goods

Products and services that satisfy the needs and wants of consumers directly.

Capital Goods

Goods that are used in producing other goods, rather than being bought by consumers directly.