On January 31,a Company Needed to Estimate Its Ending Inventory

question 104

Multiple Choice

On January 31,a company needed to estimate its ending inventory to prepare its monthly financial statements.The following information is currently available: Inventory as of January 1: $120,500
Net sales for January: $400,000
Net purchases for January: $270,500
This company typically achieves a gross profit ratio of 15%.Ending Inventory under the gross profit method would be:

• A)$102,425.
• B)$10,425.
• C)$9,000.
• D)$51,000.
• E)$51,425.

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Definitions:

Conflict

A situation where individuals or groups have opposing ideas, interests or opinions, resulting in a disagreement.

Dominant Style

Refers to the most prominent or influential manner in which an activity is performed or an idea is presented.

Communicators

Individuals or entities that convey information, ideas, or messages to others, through various means and mediums.

People

Refers to human beings collectively, often considered in contrast to other animals or as a collective term for all humanity.