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At the End of 2012, a Company Reported Cost of Goods

Question 21

Multiple Choice

At the end of 2012, a company reported cost of goods sold of $4,800, which represented 80% of the goods available for sale. The beginning inventory amount was twice as much as the ending inventory amount. What was the amount of purchases for 2012?


A) $1,200
B) $2,400
C) $3,600
D) $5,400

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