Question
question 10 ABC Co. uses a periodic approach to accounting for inventory. On December 31, 20X7,...
question 10
ABC Co. uses a periodic approach to accounting for inventory. On December 31, 20X7, an inventory count was performed resulting in a determination that the year-end inventory balance was $700,000. December 31, 20X7 year-end account balances before considering the inventory count were as follows:
Sales…………………………………………….$5,800,000
Inventory………………………………………….$620,000
Purchases…………………………………..……$3,400,000
What is the gross profit for the year ended December 31, 20X7?
| a. |
$3,320,000 |
|
| b. |
$2,480,000 |
|
| c. |
$2,420,000 |
|
| d. |
$2,320,000 |
question 11
ABC Co. uses a periodic approach to accounting for inventory. On December 31, 20X7, an inventory count was performed resulting in a determination that the year-end inventory balance was $700,000. December 31, 20X7 year-end account balances before considering the inventory count were as follows:
What is the gross profit ratio for the year ended December 31, 20X7?
Sales…………………………………………….$5,800,000
Inventory………………………………………….$620,000
.……$3,400,000….Purchases………………………………
| a. |
42.8% |
|
| b. |
41.7% |
|
| c. |
40.0% |
|
| d. |
57.2% |
Question 28
-
The following information is available for a company that uses the conventional retail method for interim reporting to estimate cost of goods sold and ending inventory:
@ Cost @ Retail
Jan. 1 20X8 inventory balance………………………………….$290,000 $320,000
Purchases……………………………………………………….... 510,000 680,000
Available for sale……………………………………………..…..$800,000 $1,000,000
Less: Sales…………………………………………………….....…. (900,000)
Ending March 31 Inventory @ Retail…………………….……... $100,000
What is the estimated cost of goods sold through March 31?
a. $80,000
b. $720,000
c. $180,000
d. $700,000
Homework Answers
Answer #1
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