On January 1, 2019, the merchandise inventory of Gulf, Inc. was $800,000. During 2019 Gulf purchased $1,600,000 of merchandise and recorded sales of $2,000,000. The gross profit rate on these sales was 30%. What is the merchandise inventory of Gulf at December 31, 2019? Selected Answer: $1,000,000. Correct Answer: $1,000,000.
On January 1, 2019, the merchandise inventory of Gulf, Inc. was $800,000. During 2019 Gulf purchased $1,600,000 of merchandise and recorded sales of $2,000,000. The gross profit rate on these sales was 30%. What is the merchandise inventory of Gulf at December 31, 2019? Selected Answer: $1,000,000. Correct Answer: $1,000,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
Answers
Transcribed Image Text:Selected Answer:
71.05%
What is the cost to retail ratio?
Correct Answer:
71.05%
Question 2
On January 1, 2019, the merchandise inventory of Gulf, Inc. was $800,000. During 2019 Gulf purchased $1,600,000 of merchandise and
recorded sales of $2,000,000. The gross profit rate on these sales was 30%. What is the merchandise inventory of Gulf at December 31, 2019?
Selected Answer:
$1,000,000.
Correct Answer:
$1,000,000.
Question 3
Arab Inc. uses the conventional retail method to determine its ending inventory at cost. Assume the beginning inventory at cost (retail) were
S65,500 ($99,000), purchases during the current year at cost (retail) were S568,000 ($860,000), freight-in on these purchases totaled $26,500,
sales during the current year totaled $811,000, and net markups were $69,000 and net markdown were $15,000. What is the ending inventory
value at cost?
Selected Answer:
$129,684
Correct Answer:
$129,684
Question 4
The sales price for a product provides a gross profit of 32% of sales price. What is the gross profit as a percentage of cost?
2:23 AM
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education