Cost Account Subject Question:Financial AccountVilla Sales Company had the following amounts related to its business:Beginning Inventory$ 12,000Purchases$ 42,000Net SalesGross Profit$ 50,000$ 15,000The amount of the ending inventory is:a. $54,000b. $77,000c. $19,000d. $35,000

To determine the ending inventory, we use the cost of goods sold (COGS) formula:…

Answered: Question:Financial Account Villa Sales…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 46E

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Question:Financial Account Villa Sales Company had the following amounts related to its business: Beginning Inventory $ 12,000 Purchases $ 42,000 Net Sales Gross Profit $ 50,000 $ 15,000 The amount of the ending inventory is: a. $54,000 b. $77,000 c. $19,000 d. $35,000