Which is cost of goods sold divided by average inventory

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Problem 1: A company purchased 100 units for $20 each on January 31. It purchased 100 units for $30 on February 28. It sold 150 units for $45 each from March 1 through December 31. If the company uses the LIFO inventory costing method, which of the following amounts will be the amount of inventory on the December 31 balance sheet?

A) $1,250

B) $1,000

C) $1,500

D) $2,250

Problem 2: Which of the following is gross profit divided by net sales?

A) Debt ratio

B) Rate of inventory turnover

C) Current ratio

D) Gross profit percentage

Problem 3: Which of the following is cost of goods sold divided by average inventory?

A) Rate of inventory turnover

B) Gross profit

C) Debt ratio

D) Debt ratio

Reference no: EM132792967

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