Base your answer to question 15 on the following data obtained from the records of the Double Faces Shop as of December 31, 20X1.

REQUIRED: Using the work sheet provided at the back of this unit, compute the December 31, 20X1, inventory at cost, using the retail inventory method. Then answer the following question.

Question 15: The ending inventory at cost is

A. $10,833. C. $3,900.

B. $6,500. D. $2,600.

Base your answer to question 16 on the following account balances taken from the ledger of the Moon Light Corp as of December 31, 20X3.

REQUIRED: The gross profit was 30% of net sales in all previous years. Prepare an estimate of the December 31, 20X3, inventory, using the work sheet provided at the back of this unit, and then answer question 16

Question 16: The estimated December 31, 20X3, inventory, computed by using the gross-profit method of estimating inventories is

A. $123,838. C. $113,170.

B. $117,938. D. $111,210.

  • Attachment 1
  • Attachment 2

Inventory – December 31, 20 x0 :Cost$ 15 , 210Selling price28, 420Purchases :"Cost93, 450Selling price15 4, 900Transportation – in1 , 560Returns !Purchases :"Cost2, 220Selling price3 , 320Sales173 , 500