On March 31 a company needed to estimate its ending inventory to prepare its first quarter financial statements. The following information is available: Beginning inventory, January 1: $4200Net sales: $42,000Net purchases: $43,000 The company's gross margin ratio is 15%. Using the gross profit method, the cost of goods sold would be:
A. $26,300.
B. $5200.
C. $35,700.
D. $4200.
E. $22,100.
Answer: C
You might also like to view...
According to President Obama, "The more American companies export, the more they produce. And the more they produce, the more people they hire–and that means more jobs."
Indicate whether the statement is true or false
James knows that the company’s new widget has a defect in it that will cause it to break after 3 months of use. He decides to say nothing about it because the company really needs the income from the new widget. It appears James’s justification for his unethical behavior is:
A. Everyone else does it B. I did it for the good of others or the company C. I was only following orders D. I’m not as bad as the others
What is the role of supervisors in promoting workplace safety?
What will be an ideal response?
Keeran Corporation estimates that its variable manufacturing overhead is $5.20 per machine-hour and its fixed manufacturing overhead is $242,048 per period.If the denominator level of activity is 6,100 machine-hours, the fixed component in the predetermined overhead rate would be:
A. $39.68 per machine-hour B. $44.88 per machine-hour C. $520.00 per machine-hour D. $5.20 per machine-hour