The Lyons Company's cost of goodsmanufactured was $120,000 when its saleswere $360,000 and its gross margin was$220,000. If the ending inventory of finishedgoods was $30,000, the beginning inventory offinished goods must have been:a. $20,000b. $50,000c. $110,000d. $150,000

Step 1: Introduction to the Gross margin:Gross margin is the margin calculated subtracting the cost…

Answered: The Lyons Company's cost of goods…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

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Chapter1: Financial Statements And Business Decisions

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Problem 1Q

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The Lyons Company's cost of goods manufactured was $120,000 when its sales were $360,000 and its gross margin was $220,000. If the ending inventory of finished goods was $30,000, the beginning inventory of finished goods must have been: a. $20,000 b. $50,000 c. $110,000 d. $150,000