Sarabjit Inc

question 47

Essay

Sarabjit Inc. produced the following information for December, 2019:
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, 2019 inventory balance.
b)Determine if there is any impairment of inventory at December 31, 2019.
c)Determine the cost of goods sold for December 2019.
d)The company has a historical gross margin of 25%. If sales were $400,000, what should ending inventory be at December 31, 2019?

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Definitions:

Market Segment

A specific group of potential consumers identified within a broader market based on shared characteristics or needs.

Substantial

Something of considerable importance, size, or worth.

Segmentation

The process of dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors, which might require separate products or marketing strategies.

Targeting

The process used by businesses to focus their marketing efforts on a specific audience or market segment.