A Company Has Cost of Goods Available for Sale of $250,000,sales

question 10

Multiple Choice

A company has cost of goods available for sale of $250,000,sales of $287,000,and a gross profit percentage of 30 percent.Using the gross profit method,what is the ending inventory?

• A) $113,000
• B) $50,000
• C) $49,100
• D) $163,900

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Definitions:

Full Costs

The total costs associated with the production of goods or services, including both fixed and variable costs.

External Costs

Costs incurred by third parties who are not directly involved in a transaction or economic activity, such as environmental pollution affecting the community.

Marginal Cost Curve

A graphical representation showing how the cost of producing one more unit of a good changes as production volume increases.

Marginal Social Cost

The total cost to society of producing one additional unit of a good or service, including both direct costs and any adverse impacts on third parties.