On February 2, 2013, a Fire Destroyed the Entire Inventory

question 43

Short Answer

On February 2, 2013, a fire destroyed the entire inventory of Blue Co. The following information was found in accounting records: Purchases, $280,000; Sales $460,000; beginning inventory, $80,000; average gross margin percentage during the past five years, 30%. Based on the above information, indicate whether each of the following statements is true or false.
_____ a) The cost of goods available for sale is $360,000.
_____ b) The cost of goods sold as a percent of sales is 70%.
_____ c) The estimated cost of goods sold is $202,000.
_____ d) Estimated inventory lost in the fire is $44,000.
_____ e) Estimated gross margin for the period up to the date of the fire was $138,000.

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Definitions:

Heteronomous Morality

A stage in moral development where individuals base their judgments on the dictates of authority figures.

Social Conventions

Established norms or behaviors that are accepted and enforced by society or social groups.

Moral Rules

Principles or standards of behavior that guide actions based on notions of right and wrong.

Display Rules

Cultural norms that dictate the appropriate expressions of emotions in various situations.