Question
Given the following information for Cybernet Company: Freight-in $ 400 Purchases 10,050 Sales returns 100 Beginning inventory 1,750 Sales 13,450 Gross profit on sales 20%
Given the following information for Cybernet Company:
| Freight-in | $ 400 |
| Purchases | 10,050 |
| Sales returns | 100 |
| Beginning inventory | 1,750 |
| Sales | 13,450 |
| Gross profit on sales | 20% |
Calculate ending inventory of Cybernet using the gross profit method.
| a. | $1,360 |
| b. | $1,075 |
| c. | $1,440 |
| d. | $1,520 |
Please explain the answer. Thank you.
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Frank Woods Business Accounting Volume 2
Authors: Frank Wood, Alan Sangster
14th Edition
1292209178, 9781292209173
