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NEW QUESTION: 1
Answer:
Explanation:
Explanation
NEW QUESTION: 2
The following information is available for an entity for the quarter ended March 31 of the current year:
The gross profit margin is normally 200 of sales. What is the estimated cost of the merchandise inventory at March 31 of the current year?
A. US $180,000
B. US $40,000
C. US $60.000
D. US $20,000
Answer: C
Explanation:
The gross profit margin percentage is given as 20% of sales. Hence, cost of goods sold must have been US $160,000 [$:4110,000 sales x1_0 - 2)]. The estimated cost of the inventory at March 31 is computed as follows:
C:\Documents and Settings\usernwz1\Desktop\1.PNG An entity had the following opening and closing inventory balances during the current
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US $300,000 of raw materials were purchased, of which US $20,000 were returned
because of defects. US $600,000 of direct labor costs were incurred.
US $750,000 of production overhead costs were incurred.
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Refer to the exhibit.
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Answer:
Explanation:
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