In July 2011, the accountant for LBJ Imports is in the process of preparing financial statements for
Question:
In July 2011, the accountant for LBJ Imports is in the process of preparing financial statements for the quarter ended June 30, 2011. The physical inventory, however, was last taken on June 5, and the accountant must establish the approximate cost at June 30 from the following data:
The gross profit on sales has consistently averaged 40 percent of sales. Using the gross profit method, compute the approximate inventory cost at June 30, 2011.
a. \(\$ 420,000\).
b. \(\$ 880,000\).
c. \(\$ 480,000\).
d. \(\$ 1,360,000\).
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Financial Accounting
ISBN: 9780077328702
15th Edition
Authors: Jan Williams, Sue Haka, Mark Bettner, Joseph Carcello
Question Posted: