question 10

ABC Co. uses a periodic approach to accounting for inventory. On December 31, 20X7, an inventory count was performed resulting in a determination that the year-end inventory balance was $700,000. December 31, 20X7 year-end account balances before considering the inventory count were as follows:

Sales.$5,800,000

Inventory.$620,000

Purchases..$3,400,000

What is the gross profit for the year ended December 31, 20X7?

	a.	$3,320,000
	b.	$2,480,000
	c.	$2,420,000
	d.	$2,320,000

question 11

ABC Co. uses a periodic approach to accounting for inventory. On December 31, 20X7, an inventory count was performed resulting in a determination that the year-end inventory balance was $700,000. December 31, 20X7 year-end account balances before considering the inventory count were as follows:

What is the gross profit ratio for the year ended December 31, 20X7?

Sales.$5,800,000

Inventory.$620,000

.$3,400,000.Purchases

	a.	42.8%
	b.	41.7%
	c.	40.0%
	d.	57.2%

Question 28

1. The following information is available for a company that uses the conventional retail method for interim reporting to estimate cost of goods sold and ending inventory:

   @ Cost @ Retail

   Jan. 1 20X8 inventory balance.$290,000 $320,000

   Purchases.... 510,000 680,000

   Available for sale....$800,000 $1,000,000

   Less: Sales...... (900,000)

   Ending March 31 Inventory @ Retail.... $100,000

   What is the estimated cost of goods sold through March 31?

   	a.	$80,000
   	b.	$720,000
   	c.	$180,000
   	d.	$700,000