20. By the gross profit method, the ending inventory, based on the following facts, should beBeginning inventoryNet purchases57,00092,000Net sales revenueGross profit ratea. $134,000.b. $78,800.C. $55,200.d. $97,200.77,00040%

Gross profit is the excess of revenue over the cost of goods sold and net profit is the excess of…

20. By the gross profit method, the ending inventory, based on the following facts, should be Beginning inventory 57,000 92,000 Net purchases Gross profit rate Net sales revenue a. $134,000. b. $78,800. C. $55,200. d. $97,200. 77,000 40%

20. By the gross profit method, the ending inventory, based on the following facts, should be Beginning inventory 57,000 92,000 Net purchases Gross profit rate Net sales revenue a. $134,000. b. $78,800. C. $55,200. d. $97,200. 77,000 40%

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter13: Accounting For Merchandise Inventory

Section: Chapter Questions

Problem 4CE: Kulsrud Company would like to estimate the current inventory level. Using the gross profit method...

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Concept explainers

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.

Question

20. By the gross profit method, the ending inventory, based on the following facts, should be
Beginning inventory
Net purchases
57,000
92,000
Net sales revenue
Gross profit rate
a. $134,000.
b. $78,800.
C. $55,200.
d. $97,200.
77,000
40%

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