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Jefferson Company Has Sales of $300,000 and Cost of Goods

Question 104

Multiple Choice

Jefferson Company has sales of $300,000 and cost of goods available for sale of $270,000.If the gross profit ratio is typically 30%,the estimated cost of the ending inventory under the gross profit method would be:


A) $60,000
B) $180,000
C) $30,000
D) $90,000
E) $120,000

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