The following is a list of selected events for Unger Sales and Service for year 2012. Unger uses a perpetual inventory system and had a zero inventory balance prior to these transactions. 1) Purchased merchandise on account for $67,000. 2) Sold inventory costing $48,000 for $88,000 on account. 3) Paid transportation-out cost of $1,000 on goods sold. 4) Paid salary expense of $25,000. 5) A count of the inventory revealed that there was $18,500 of inventory on hand at the end of 2012. Compute the gross margin for 2012 for Unger.

Financial Accounting
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ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter7: Inventories
Section: Chapter Questions
Problem 4PEB: Beginning inventory, purchases, and sales for WCS12 are as follows: Assuming a perpetual inventory...
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The following is a list of selected events for Unger Sales and Service for
year 2012. Unger uses a perpetual inventory system and had a zero
inventory balance prior to these transactions.
1) Purchased merchandise on account for $67,000.
2) Sold inventory costing $48,000 for $88,000 on account.
3) Paid transportation-out cost of $1,000 on goods sold.
4) Paid salary expense of $25,000.
5) A count of the inventory revealed that there was $18,500 of inventory
on hand at the end of 2012.
Compute the gross margin for 2012 for Unger.
Transcribed Image Text:The following is a list of selected events for Unger Sales and Service for year 2012. Unger uses a perpetual inventory system and had a zero inventory balance prior to these transactions. 1) Purchased merchandise on account for $67,000. 2) Sold inventory costing $48,000 for $88,000 on account. 3) Paid transportation-out cost of $1,000 on goods sold. 4) Paid salary expense of $25,000. 5) A count of the inventory revealed that there was $18,500 of inventory on hand at the end of 2012. Compute the gross margin for 2012 for Unger.
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