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The Average Cost Inventory Costing Method Is Used by Indiana

Question 15

Multiple Choice

The average cost inventory costing method is used by Indiana, Inc. Sales are $160,000, the number of units available for sale is 100, the number of units sold during the period is 75, and the average cost of the goods available for sale is $800 each.
How much is gross profit for the company?


A) $ 40,000
B) $ 60,000
C) $100,000
D) $ 50,000

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