Question

*Just the answers are fine*

1) The following data is available for your company:

Net Sales     $1,000,000

Beginning inventory     $700,000

Net purchases $200,000

Gross profit rate 60%

How much is the estimated ending inventory?

		$500,000
		$1,000,000
		$300,000
		$360,000

2) Outstanding checks refer to checks that have been:

		written, recorded and sent to the customer, but not yet paid by the bank.
		written, recorded, sent to payees, and received and paid by the bank.
		held as blank checks.
		written, and not yet recorded in the company's books.

3) ABC Company uses perpetual inventory. Details during January, 2020 are below:

     UNITS    COST PER UNIT    TOTAL

Balance, Jan 1      200 units      $5.00    $1,000

Purchase Jan 15 100 units    $6.00    600

Sale Jan 20 120 units

The company sells units for $10 each. A physical count of merchandise inventory on January 31 reveals that there are 180 units on hand.

Using LIFO, the value of the cost of goods sold for January is     

		$656
		$1,530
		$520
		$700

Answer 1

The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet.