Western Company recently lost its entire inventory in an earthquake. The following information is available from its

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Western Company recently lost its entire inventory in an earthquake. The following information is available from its accounting records:

Beginning Inventory: $5,000; Purchases: $18,000; Net Sales: $40,000;The company’s average gross profit percentage is 40%.

Using the gross profit method, a reasonable estimate of COGS for the past period would be:

1) $ 23,000

2) $ 24,000

3) $ 16,000

4) $ 18,000

Related Book For answer-question

Accounting What the Numbers Mean

ISBN: 978-0073527062

9th Edition

Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele,

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Posted Date: Aug 24, 2022 12:31 AM

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Western Company recently lost its entire inventory in an earthquake. The following information is available from its

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Expert Answer:

The correct answer is option B24000 We can find it by using the below formula Cost of goods ... View the full answer

Accounting What the Numbers Mean

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