What Is Ending Inventory Assuming Northwest Uses the Gross Method

question 126

Multiple Choice

What is ending inventory assuming Northwest uses the gross method to record purchases?

• A)$112,490.
• B)$112,550.
• C)$116,500.
• D)$120,300.

---

Definitions:

Manufacturing Company

A business entity that produces goods using raw materials and processes for sale.

Period Cost

Expenses incurred that are not directly tied to the production process, such as administrative, selling, and marketing costs.

Total Manufacturing Costs

The sum of all costs directly related to the production of goods, including direct materials, direct labor, and manufacturing overhead.

Raw materials

Basic substances in their natural, modified, or semi-processed state, used as inputs for production.