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Walker Manufacturing Took in $206,500 in Sales During October

Question 25

Multiple Choice

Walker Manufacturing took in $206,500 in sales during October. They started the month with inventory worth $642,500 and spent $368,600 on new purchases during the month. Gross margin on sales was 66%. Using the gross profit method, estimate the cost value of the inventory at the end of October.


A) $70,210
B) $436,000
C) $940,890
D) $1,011,100

Correct Answer:

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