Unformatted text preview: $828 10 b Inventory Turnover = Cost of Goods Sold / Average Inventory Note: Average Inventory = (Beg. Inv. + End Inv.) / 2 $8,191 / (($1,902+$2,464)/2) = 4 times 11 a Beginning Inventory $32,000 Purchases 58,000 Cost of Goods Available 90,000 Less Cost of Goods Sold (81,600) Ending Inventory $8,400 The calculation of Cost of Goods Sold is based on a gross margin of 32%. If the gross margin is 32% of sales, then the cost of goods sold is 100%-32%=68%. Sales $120,000 Cost of Goods Sold Percentage x68% Cost of Good Sold $81,600...
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This note was uploaded on 04/16/2008 for the course BUS 230A taught by Professor S during the Spring '08 term at Sonoma.
- Spring '08