If the estimated rate of gross profit is 40%, what is the estimated cost of the merchandise inventory on June 30, based on the following data? June 1 Merchandise inventory $ 75,000 June 1-30 Purchases (net) 1,50,000 June 1-30 Sales (net) 1,00,000 A. $125,000 B. $81,500 C. $144,000 D. $165,000

If the estimated rate of gross profit is 40%, what is the estimated cost of the merchandise inventory on June 30, based on the following data? June 1 Merchandise inventory $ 75,000 June 1-30 Purchases (net) 1,50,000 June 1-30 Sales (net) 1,00,000 A. $125,000 B. $81,500 C. $144,000 D. $165,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 2MC: The following information is available for Cooke Company for the current year: The gross margin is...

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Question

If the estimated rate of gross profit is 40%, what is the estimated cost
of the merchandise inventory on June 30, based on the following data?
June 1
Merchandise inventory
$ 75,000
June 1-30
Purchases (net)
1,50,000
June 1-30
Sales (net)
1,00,000
A. $125,000
B. $81,500
C. $144,000
D. $165,000

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