1. Blue Moon Company has the following data for the year:

Beginning inventory	$80,000	Net purchases $115,000
Net sales revenue	$200,000	Normal gross profit percentage	45%

What is the estimated ending inventory? A) $65,000

B) $85,000

C) $80,000

D) $105,000

2. ABC Auto Sales sells new Lexus vehicles. ABC will most likely use the method to cost its ending inventory.

1. Specific-unit-cost
2. Weighted-average
3. First-in, first-out
4. Last-in, first-out