a company beginning inventory is $130000 its net purchases are $220000 and its net sales total $470000 its normal gross profit percentage is 30% of sales using the gross profit method how much is ending inventory

A. $21,000

B. $141,000

C. $250,000

D. $ 239,000

An understatement of ending inventory by $2 million in one period results in

A. an overstatement of gross profit by $2 million in next period

B. an understatement of gross profit by $2 million in next period

C. no effect on net income in next period

D.an overstatement of the beginning inventory by $2 million in next period

Packard co was organized to sell a single product that carries a 45 day warranty against defects. Engineering estimates indicate that 3% of the units sold will prove defective and require an average repair cost of $55 per unit. during Packard's first month of operation total sales were 800 units by the end of the month ten defective units had been repaired. The ability for product warranties at month end should be

A. $550

B. $1,320

C. $ 1,870

D. $770