During the month of January, Sundown Corporation had sales of $300,000 and a cost of goods available

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During the month of January, Sundown Corporation had sales of $300,000 and a cost of goods available for sale of $600,000. The company consistently earns a gross profit rate of 45%.

Using the gross profit method, the estimated inventory at January 31 amounts to:

A. $135,000.
B. $435,000.
C. $165,000.
D. $465,000.

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College Accounting

ISBN: 978-0538745192

20th Edition

Authors: Heintz and Parry

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Posted Date: Jan 03, 2021 09:27 AM

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During the month of January, Sundown Corporation had sales of $300,000 and a cost of goods available

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Sales 300000 Gross profit rate 45 Therefore Cost of goo... View the full answer

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