The Crystal Glass is a trader in chinaware décor . The following information is available at the end of 2010: Opening Inventory $31,400Closing Inventory $20,400Sales for December 2010 $90,000Standard margin is 33 1/3 % Based on this information, what was the amount for the purchases? $22,500$30,000$49,000 $56,500

Name: The Crystal Glass is a trader in chinaware décor . The following
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Description: The Crystal Glass is a trader in chinaware décor . The following information is available at the end of 2010: Opening Inventory $31,400Closing Inventory $20,400Sales for December 2010 $90,000Standard margin is 33 1/3 %

Answered: The Crystal Glass is a trader in…

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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The Crystal Glass is a trader in chinaware décor . The following information is available at the

end of 2010:

Opening Inventory $31,400
Closing Inventory $20,400
Sales for December 2010 $90,000
Standard margin is 33 1/3 %

Based on this information, what was the amount for the purchases?

$22,500
$30,000
$49,000
$56,500

Expert Solution

Step 1

Gross margin = Sales*Margin

Cost of goods sold = Sales - Gross margin

Purchases = Cost of goods sold + Ending inventory - Beginning inventory

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