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Please show work and explain 14) A company has a beginning inventory of $40,000 and purchases during the year of $110,000. The beginning inventory consisted
Please show work and explain
14) A company has a beginning inventory of $40,000 and purchases during the year of $110,000. The beginning inventory consisted of 3,000 units and 7,000 units were purchased during the year. The company has 4,000 units left at year-end. Under average-cost, what is Cost of Goods Sold? A) $150,000 B) $90,000 D) $110,000 C) $60,000 15) A gross profit percentage of 30% means that: A) for each dollar of sales, the company has a cost of goods sold of seventy cents B) for each dollar of sales, the company has a gross profit of thirty cents. C) for each dollar of sal es, the company has a cost of goods sold of thirty cents D) both A and B are true 16) On June 1, Nicholson Company purchased inventory on account with a cost of $1,000. Credit terms were 2/10, net 30. On June 2, Nicholson Company returned 50 percent of the inventory. Nichol son Company uses theperpetual inventory system. What journal entry did Nicholson Company prepare on June 2? A) debit Purchase Returnsfor $1,000 and credit Accounts Payable for $1,000 B) debit Purchase Returns for $500 and credit Accounts Payable for $500 C) debit Accounts Payable for $500 and credit Inventory for $500 D) debit Cash for $1,000 and credit Accounts Payable for $1,000 17) Blue Company has the follow ing data for the year: $80,000 $300,000 Net purchases Normal gross profit percentage $120,000 40% Beginning inventory Net sales revenue What is the estimated ending inventory? A) $120,000 D) $20,000 B) $32,000 C) $24,000Step by Step Solution
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