QUESTION 20 On March 31 a company needed to estimate its ending inventory to pre

ID: 2590376 • Letter: Q

Question

QUESTION 20 On March 31 a company needed to estimate its ending inventory to prepare its first quarter financial statenents. The following information is available: Beginning inventory, January 1: $4,000 Net sales: $80,000 Net purchases: $78,000 The company's gross margin ratio is 25%. Using the gross profit method, the estimated ending inventory value would be: o $82,000. o $60,000. $20,000. $22,000 $19,500. QUESTION 21 All of the following statements regarding U.S. GAAP and IFRS are true except Click Save and Submit to save and submit. Click Save All Ansuers to save all l answers Save All An

Explanation / Answer

Answer : D)$22,000

opening inventory

$4,000

Add: purchases

$78,000

$82,000

Less : cost of goods sold (80,000*75%)

($60,000)

Ending inventory

$22,000