For 2007, cost of goods available for sale for Vale 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.

Question

Quizplus · Accepted Answer

Cost of goods sold = $800,000 x (1 - 20%) = $640,000Ending inventory = Cost of goods available for sale - Cost of goods soldEnding inventory = $900,000 - $640,000 = $260,000

For 2007, Cost of Goods Available for Sale for Vale