1-4 mastering inventory. I need the following answered. Thank you so much !
Final Examination (Optional)MASTERING INVENTORYInstructions: Detach the Final Examination Answer Sheet on page 215before beginning your final examination. Select the correct letter for the060.82answer to each multiple choice question below, and then mark it on theAnswer Sheet. Allow approximately 21/2 hours.1. BaCo opens its business in 19X2 and purchases merchandise on account for090 28$88,000. In 19X2, BaCo pays $67,000 cash on the $88,000 due, sales are$145,000, and ending inventory is $24,000. BaCo’s gross profit for 19X2 is …a. $102,000 b. $81,000 c. $78,000d. $57,0002. GeCo begins 19X4 with merchandise costing $69,000. 19X4 sales are$233,000, purchases are $198,000, and ending inventory is $81,000.GeCo’s 19X4 cost of goods sold is . ..at 000,008 viewa. $245,000 b. $221,000 c. $210,000 d. $186,0003. On December 3, HuCo purchases merchandise for $47,000 on account,F.O.B. destination. Freight charges are $800. On December 26, HuCo1060,8pays the vendor $14,000. On HuCo’s December 31 balance sheet theaccounts payable balance will be . . .ODO.1a. $33,800b. $47,000 c. $47,800 d. $33,000000,&4. RiCo uses the perpetual method for inventory and records purchases atgross. In 19X4, it has total merchandise purchases of $324,000. It returns500.8$19,000 of the merchandise for full credit and receives $7,000 in090,6allowances from its vendors for defective merchandise and takes cash060, I discounts of $1,000. The net cost of RiCo’s 19X4 merchandise purchasesis . ..a. $297,000 b. $305,000 c. $324,000 d. $298,000006.6000.