Question

Question 7 /1 View Policies Current Attempt in Progress Presented below is information related to lvanhoe Corporation for the current year. $606,200 Beginning inventory Purchases 1,520,700 $2,126,900 Total goods available for sale Sales revenue 2,505,000 Compute the ending inventory, assuming that (a) gross profit is 49% of sales, (b) gross profit is 60% of cost, (c) gross profit is 32% of sales, and (d) gross profit is 25% of cost. (Round ratios for computational purposes to 1 decimal place, e.g. 78.7% and final answers to 0 decimal places, e.g. 28,987.) Ending Inventory $ (a) Gross profit is 49% of sales $ (b) Gross profit is 60% of cost $ (c) Gross profit is 32% of sales $ (d) Gross profit is 25% of cost

Answer 1

Answers

	Ending Inventory
[a]	$849,350
[b]	$561,275
[c]	$423,500
[d]	$122,900

• Workings

A	Sales Revenue	$2,505,000	$2,505,000	$2,505,000	$2,505,000
B	Cost of Goods Sold	$1,277,550 [Sales x 51%]	$1,565,625 [Sales / 160%]	$1,703,400 [Sales x 68%]	$2,004,000 [Sales / 125%]
C	Total Goods available for sale	$2,126,900	$2,126,900	$2,126,900	$2,126,900
D = C - B	Ending Inventory	$849,350	$561,275	$423,500	$122,900