Prior to Taking a Physical Inventory at Year-End, the Perpetual

question 33

Multiple Choice

Prior to taking a physical inventory at year-end, the perpetual inventory records of Athena Designs showed an inventory of $26,000, sales of $358,000, and a cost of goods sold of $215,000. The year-end physical inventory indicated merchandise on hand costing $24,000. The company's gross profit for the year was:

• A) $334,000.
• B) $145,000.
• C) $141,000.
• D) Some other amount.

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Definitions:

Labor Unions

Labor unions are organizations that represent the collective interests of workers, negotiating wages, benefits, and working conditions on their behalf.

Agency Shop

A workplace where employees are not required to join the union, but must still pay union dues as the union negotiates on behalf of all employees.

Employment

The state of having paid work, or the relationship between an employer and an employee where work is performed for wages.

Wage Rates

The monetary compensation paid to workers per unit of time or output, often standardized by industry, skill level, or geographical location.