Chapter 5 Test (Graded) Saved Help Save & Exit Submit When preparing its quarterly financial statements, Pace Co uses the gross margin method to estimate ending inventory. The following information is available for the quarter ending March 31 Year 2 12 Beginning inventory Purchases Sales Estimated gross margin percentage $110,000 $385,000 $525,000 45% What is the estimated amount of inventory that is on hand on March 31, Year 2? Multiple Choice $236.260 O $288.750 $200.250 ME GE IN Chapter 5 Test (Graded) Help Save & Exit Submit 13 Vargas Company uses the perpetual inventory system and the FIFO cost flow method. During the current year Vargas purchased 400 units of inventory that cost $15.00 each. At a later date during the year, the company purchased an additional 800 units of Inventory that cost $18.00 each. Vargas sold 500 units of inventory for $2700. What is the amount of cost of goods sold that will appear on the current year's income statement? Multiple Choice $7800 o $6,000 $4500 $5.700