Answered: A firm had beginning finished goods…

A firm had beginning finished goods inventory of 20,000; its cost of goods manufactured was 75,000; its gross margin was 80,000; and its sales were 140,000. The ending finished goods inventory was: *

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 1E: At the end of the first year of operations, 21,500 units remained in the finished goods inventory....

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Question

A firm had beginning finished goods inventory of 20,000; its cost of goods manufactured was 75,000; its gross margin was 80,000; and its sales were 140,000. The ending finished goods inventory was: *

a. 60,000

b. 40,000

c. 95,000

d. 35,000

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