Question 29/50 58 % O 83 min 18 secs Catt sells goods at a margin of 50%. During the year to 31 March 2015 the business made purchases totalling $134,025 and sales totalling $240,000. Inventories in hand at 31 March 2015, valued at cost, was $11,385 higher than the corresponding figure at 1 April 2014. What was the cost of the goods Catt had drawn out? A. O 14590 В. 2640 С. Nin 25410 D. 37360 Next O Mark For Review O

Question 29/50 58 % O 83 min 18 secs Catt sells goods at a margin of 50%. During the year to 31 March 2015 the business made purchases totalling $134,025 and sales totalling $240,000. Inventories in hand at 31 March 2015, valued at cost, was $11,385 higher than the corresponding figure at 1 April 2014. What was the cost of the goods Catt had drawn out? A. O 14590 В. 2640 С. Nin 25410 D. 37360 Next O Mark For Review O

Financial & Managerial Accounting

13th Edition

ISBN:9781285866307

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter5: Accounting For Merchandising Businesses

Section: Chapter Questions

Problem 5.35EX: Cost of merchandise sold and related items The following data were extracted from the accounting...

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Cost of merchandise sold and related items The following data were extracted from the accounting records of Harkins Company for the year ended April 30, 2016: Merchandise inventory. May 1, 2015 380,000 Merchandise inventory, April 30,2016 415,000 Purchases 3,800,000 Purchases returns and allowances 150,000 Purchases discounts 80,000 Sales 5,850,000 Freight in 16,600 a. Prepare the cost of merchandise sold section of the income statement for the year ended April 30, 2016, using the periodic inventory system. b. Determine the gross profit to be reported on the income statement for the year ended April 30, 2016. c. Would gross profit be different if the perpetual inventory system was used instead of the periodic inventory' system?
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