Question Details

What is the merchandise inventory of Glaus 



1.	Reyes Company had a gross profit of $360,000, total purchases of $420,000, and an ending inventory of $240,000 in its first year of operations as a retailer. Reyes- sales in its first year must have been
a.	$540,000.
b.	$660,000.
c.	$180,000.
d.	$600,000.

	2.	A markup of 40% on cost is equivalent to what markup on selling price?
a.	29%
b.	40%
c.	60%
d.	71%

3.	Kesler, Inc. estimates the cost of its physical inventory at March 31 for use in an interim financial statement. The rate of markup on cost is 25%. The following account balances are available:
Inventory, March 1	$220,000
Purchases	172,000
Purchase returns	8,000
Sales during March	300,000
The estimate of the cost of inventory at March 31 would be
a.	$84,000.
b.	$144,000.
c.	$159,000.
d.	$112,000.

	4.	On January 1, 2010, the merchandise inventory of Glaus, Inc. was $800,000. During 2010 Glaus purchased $1,600,000 of merchandise and recorded sales of $2,000,000. The gross profit rate on these sales was 25%. What is the merchandise inventory of Glaus at December 31, 2010?
a.	$400,000.
b.	$500,000.
c.	$900,000.
d.	$1,500,000.



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