Question Details

What was the amount of the ending inventory 



1.	For 2010, cost of goods available for sale for Tate Corporation was $900,000. The gross profit rate was 20%. Sales for the year were $800,000. What was the amount of the ending inventory ?
a.	$0.
b.	$260,000.
c.	$180,000.
d.	$160,000.

	2.	On April 15 of the current year, a fire destroyed the entire uninsured inventory of a retail store. The following data are available:
Sales, January 1 through April 15	$300,000
Inventory, January 1	50,000
Purchases, January 1 through April 15	250,000
Markup on cost	25%
		The amount of the inventory loss is estimated to be
a.	$60,000.
b.	$30,000.
c.	$75,000.
d.	$50,000.

	3.	The sales price for a product provides a gross profit of 25% of sales price. What is the gross profit as a percentage of cost?
a.	25%.
b.	20%.
c.	33%.
d.	Not enough information is provided to determine.

4. 	Gamma Ray Corp. has annual sales totaling $650,000 and an average gross profit of 20% of cost. What is the dollar amount of the gross profit?
a.	$130,000.
b.	$97,500.
c.	$108,333.
d.	$162,500.

	5.	On August 31, a hurricane destroyed a retail location of Vinny's Clothier including the entire inventory on hand at the location. The inventory on hand as of June 30 totaled $320,000. From June 30 until the time of the hurricane, the company made purchases of $85,000 and had sales of $250,000. Assuming the rate of gross profit to selling price is 40%, what is the approximate value of the inventory that was destroyed?
a.	$320,000.
b.	$181,500.
c.	$205,000.
d.	$255,000.




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