The Moringa Valley is a trader in a roots drink. On December 31, 2020 the closing...

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The Moringa Valley is a trader in a roots drink. On December 31, 2020 the closing inventory was completely contaminated by caustic soda. The following information is available: (1) Inventory at December 1, 2020 at cost $31,400 (2) Purchases for December 2020 $55,600 (3) Sales for December 2020 $88,800 (4) Standard margin from sales is 25% Based on this information, what was the value of the closing inventory? Select one: O O O O a. $15,960 b. $20,400 c. $22,200 d. $17,760 The Moringa Valley is a trader in a roots drink. On December 31, 2020 the closing inventory was completely contaminated by caustic soda. The following information is available: (1) Inventory at December 1, 2020 at cost $31,400 (2) Purchases for December 2020 $55,600 (3) Sales for December 2020 $88,800 (4) Standard margin from sales is 25% Based on this information, what was the value of the closing inventory? Select one: O O O O a. $15,960 b. $20,400 c. $22,200 d. $17,760

Answer rating: 100% (QA)

Cost of Goods Sold Sales x 100 Gross Margin 88800 x 100 25 66600 Ending Inventory Beginni... View the full answer