8.A company has cost of goods available for sale of $250,000, salesof $305,000, and a gross profit percentage of 30 percent. Using thegross profit method, what is the ending inventory?a. $95,000b. $50,000c. $36,500d. $158,5009.Which inventory method generally best follows the matchingprinciple?a.Average-costb.LIFOc.Whichever method is used for tax purposesd.FIFO10.mhsgeb gnierIn a period of rising prices, which inventory method is best touse for tax purposes?nting recpupob toa. FIFOb. Average-cost801badong lonnoeeg bnuo dnoltsofthey thobnaqebni olbole?c. Specific identificationnollensqa bd. LIFO1. A good system of internal control is designed to achieve all of thefollowing excepta. Efficiency of operationsnob. Reliability of financial reportingsri yd betelloo estol300c. Compliance with relevant laws and regulationsdd. Attainment of target sales3горsopiado

"As per guidelines, we will solve first question for you. If you want any specific question to be…

8.A company has cost of goods available for sale of $250,000, sales of $305,000, and a gross profit percentage of 30 percent. Using the gross profit method, what is the ending inventory? a. $95,000 b. $50,000 c. $36,500 d. $158,500

8.A company has cost of goods available for sale of $250,000, sales of $305,000, and a gross profit percentage of 30 percent. Using the gross profit method, what is the ending inventory? a. $95,000 b. $50,000 c. $36,500 d. $158,500

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

8.A company has cost of goods available for sale of $250,000, sales
of $305,000, and a gross profit percentage of 30 percent. Using the
gross profit method, what is the ending inventory?
a. $95,000
b. $50,000
c. $36,500
d. $158,500
9.Which inventory method generally best follows the matching
principle?
a.Average-cost
b.LIFO
c.Whichever method is used for tax purposes
d.FIFO
10.
mhsgeb gnier
In a period of rising prices, which inventory method is best to
use for tax purposes?
nting rec
pupob to
a. FIFO
b. Average-cost
801badong lonnoeeg bnuo d
noltsofthey thobnaqebni olbole?
c. Specific identification
nollensqa b
d. LIFO
1. A good system of internal control is designed to achieve all of the
following except
a. Efficiency of operations
no
b. Reliability of financial reporting
sri yd betelloo estol
300
c. Compliance with relevant laws and regulations
d
d. Attainment of target sales
3
гор
sopiado

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Income Statement Sales Revenue Cost of Goods Sold* Gross Profit Operating Expenses Income from Operations Income Tax Expense Net Income *Cost of Goods Sold Equation Beginning Inventory Purchases Goods Available for Sale Ending Inventory Cost of Goods Sold Units 3,000 3,000 $ $ 3,000 $ FIFO Inventory Costing Method LIFO 3,000 3,000 3,000 3,000 0 0 0 0 0 0 0 Weighted Average $ $ 0 0 0 0 0
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