Songbird Company has sales of $150,000 and the cost of goods available for sale of $135,000. If the gross profit rate is 30%, the estimated cost of the ending inventory under the gross profit method is: a. $15,000 b. $30,000 c. $90,000 d. $105,000

Songbird Company has sales of $150,000 and the cost of goods available for sale of $135,000. If the gross profit rate is 30%, the estimated cost of the ending inventory under the gross profit method is: a. $15,000 b. $30,000 c. $90,000 d. $105,000

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

Provide correct solution and accounting

Songbird Company has sales of $150,000
and the cost of goods available for sale
of $135,000. If the gross profit rate is
30%, the estimated cost of the ending
inventory under the gross profit method
is:
a. $15,000
b. $30,000
c. $90,000
d. $105,000

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