ANSWERS TO QUESTIONS

Since one-half of the freight-in cost ($6,000) pertains to merchandise properly included in inventory as of 12/31/07, $3,000 should be added to the inventory column. ... Cost of good sold Cost of good available $16,200,000 Ending inventory 4,760,000 Cost of goods sold $11,440,000 4. Gross profit Sales $15,420,000 Cost of goods sold 11,440,000 ... ................
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