Using the Following Information,calculate for 20xx (A)net Sales,(b)beginning Merchandise Inventory,(c)gross

question 15

Essay

Using the following information,calculate for 20xx (a)net sales,(b)beginning merchandise inventory,(c)gross margin,and (d)net income.
$\begin{array}{lr}\text { Sales staff Salaries Expense } & \$ 7,000 \\\text { Sales } & 90,000 \\\text { Ending Merchandise Inventory } & 16,000 \\\text { Purchases Returns and Allowances } & 500 \\\text { General and Administrative Expenses } & 11,000 \\\text { Sales Returns and Allowances } & 1,200 \\\text { Freight-In } & 1,500 \\\text { Purchases } & 30,000 \\\text { Cost of Goods Sold } & 47,000\end{array}$

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Definitions:

Equivalent Units

A concept in costing used to equate the amount of work done on partially finished goods to an equivalent number of fully finished units.

Dust Density Sensors

Instruments designed to measure the concentration of dust particles in the air.

First-In, First-Out Method

An inventory valuation method that assumes the first items purchased or produced are the first ones sold, affecting the cost of goods sold and ending inventory value.

Equivalent Units

A concept used in cost accounting to express the amount of materials, labor, and overhead in partially finished goods in terms of complete units of production.