The following information is available for an entity for the quarter ended March 31, of the current year: Merchandise inventory, as of January 1 of the current year 30,000, Sales 200,000, Purchases 190,000. The gross profit margin is normally 20% of sales. What is the estimated cost of the merchandise inventory at March 31, of the current year? Select an option 20,000 40.000 60.000 180.000
The following information is available for an entity for the quarter ended March 31, of the current year: Merchandise inventory, as of January 1 of the current year 30,000, Sales 200,000, Purchases 190,000. The gross profit margin is normally 20% of sales. What is the estimated cost of the merchandise inventory at March 31, of the current year? Select an option 20,000 40.000 60.000 180.000
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
Chapter8: Inventories: Special Valuation Issues
Section: Chapter Questions
Problem 4MC
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The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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