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?

Question

Quizplus · Accepted Answer

Cost of goods sold = Sales - Gross profit= $800,000 - (20% x $800,000)= $800,000 - $160,000= $640,000Ending inventory = Cost of goods available for sale - Cost of goods sold= $900,000 - $640,000= $260,000

For 2010, Cost of Goods Available for Sale for Tate