In July 2011, the Accountant for LBJ Imports Is in the Process

question 70

Multiple Choice

In July 2011, the accountant for LBJ Imports is in the process of preparing financial statements for the quarter ended June 30, 2011. The physical inventory, however, was last taken on June 5 and the accountant must establish the approximate cost at June 30 from the following data: The gross profit on sales has consistently averaged 40% of sales. Using the gross profit method, compute the approximate inventory cost at June 30, 2011.

• A) $420,000.
• B) $880,000.
• C) $480,000.
• D) $1,360,000.

---

Definitions:

Legitimate Power

The authority a leader has by virtue of their position or role within an organization.

Supervisor Using

The methods or approaches a supervisor employs in managing, guiding, and supporting their subordinates.

Work Weekends

The practice of engaging in professional or job-related activities during the weekend days, which are traditionally considered part of the rest period.

Pay Raise

An increase in the amount of money an employee receives for their work.