In Year 1 and Year 2, Basilisk Manufacturing reported its gross margin as follows: Basilisk Manufacturing Partial Income Statement Year 1 Year 2 Sales $6,720,000 $7,340,000 Cost of goods sold 3.001,600 3,538,400 Gross margin 3,718,400 3,801,600 In Year 3, Basilisk Manufacturing changed its inventory valuation method. If the new inventory method had been used in Year 1 and Year 2, cost of goods sold would have been less by $100,000 in Year 1 and by $140,000 in Year 2. In the Year 3 financial statements, what should be reported for the Year 2 gross margin? Select one: O a. $4,161,600 O b. $3,801,600 (There would be no difference in the amount reported since the inventory valuation method wasn't changed until Year 3.) O c. $3,661,600 O d. $3,941,600 O e. $3,561,600

In Year 1 and Year 2, Basilisk Manufacturing reported its gross margin as follows: Basilisk Manufacturing Partial Income Statement Year 1 Year 2 Sales $6,720,000 $7,340,000 Cost of goods sold 3.001,600 3,538,400 Gross margin 3,718,400 3,801,600 In Year 3, Basilisk Manufacturing changed its inventory valuation method. If the new inventory method had been used in Year 1 and Year 2, cost of goods sold would have been less by $100,000 in Year 1 and by $140,000 in Year 2. In the Year 3 financial statements, what should be reported for the Year 2 gross margin? Select one: O a. $4,161,600 O b. $3,801,600 (There would be no difference in the amount reported since the inventory valuation method wasn't changed until Year 3.) O c. $3,661,600 O d. $3,941,600 O e. $3,561,600

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Description: In Year 1 and Year 2, Basilisk Manufacturing reported its gross margin as follows:Basilisk ManufacturingPartial Income StatementYear 1Year 2Sales$6,720,000 $7,340,000Cost of goods sold 3,001,600 3,538,400Gross margin3,718,400 3,801,600In Year 3, Bas

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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Ace Company reported the following information for the current year: Sales Cost of goods sold: Beginning inventory Cost of goods purchased Cost of goods available for sale Ending inventory Cost of goods sold Gross profit $ 417,000 $ 142,500 280,000 422,500 151,000 271,500 $ 145,500 The beginning inventory balance is correct. However, the ending inventory figure was overstated by $27,000. Given this information, the correct gross profit would be: Multiple Choice $118,500. $145,500. $172,500. $131.500
I have answer for a and b Solve c
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A3
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