For calendar 2020, cost of goods available for sale for Janus Corp. was $820,000. The average gross profit rate was 30%. Sales for the year were $600,000. What is the estimated dollar value of the inventory at December 31?
A) $400,000
B) $420,000
C) $328,000
D) $88,000

Question

Quizplus · Accepted Answer

Cost of goods sold = $820,000 - $600,000 = $220,000Gross profit = $600,000 x 30% = $180,000Inventory = $220,000 - $180,000 = $40,000

For Calendar 2020, Cost of Goods Available for Sale for Janus