On March 31 a Company Needed to Estimate Its Ending

question 96

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

---

Definitions:

Personal Unconscious

A term from Jungian psychology referring to all information that is present within an individual's mind but not currently in conscious awareness.

Libido

In psychoanalytic theory, the energy of the sexual drive as a component of the life instinct.

Archetypes

Universal, inherited models of people, behaviors, or personalities that inform various human traits and interactions, as proposed by Carl Jung.

Reservoir

A storage space for fluids, often water, or a metaphorical term for a large supply or source of something.