32.

A store uses the gross profit method to estimate inventory and cost of goods sold for interim reporting purposes. Past experience indicates that the average gross profit rate is 30% of net sales. The following data relate to the month of March: Using the data above, what is the estimated ending inventory at March 31?

Select one:

a. $20,250

b. $33,200

c. $35,300

d. $71,750

e. $31,250

33.

Use the following information for the month of May: Assuming that a periodic inventory system is used, what is ending inventory on a FIFO basis?

Select one:

a. $720

b. $680

c. $1,280

d. $1,320

Inventory cost, March 1 Purchases during the month at cost Sales Sales returns $25,000 67,000 84,000 3,000 May 7 18 22 29 Beginning Inventory Purchases Sales Purchases Sales 20 units @ $19 65 units @ $20 25 units 40 units @ $22 40 units