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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
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 11RE: Johnson Corporation had beginning inventory of 20,000 at cost and 35,000 at retail. During the year,...
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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
Transcribed Image Text: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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