ACC410 E9-17 - E917 Page 473 $ 600,000 1,500,00 0 $...

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Unformatted text preview: E917 Page 473 $ 600,000 1,500,00 0 $ 2,100,000 2,300,00 0 40% 60% 35% 25% Beginning Inventory Purchases Total goods available fo sale Sales a. b. c. d. (a) Gross Profit of Sales Gross Profit of Cost Gross Profit of Sales Gross Profit of Cost Gross profit is 40% of sales Total goods available for sale (at cost) Sales (at selling price) Less: Gross profit (40% of sales) Sales (at cost) Ending inventory (at cost) $ 2,300,000 920,00 0 $ 2,100,000 1,380,00 0 $ 720,000 1 (b) Gross profit is 60% of cost 60% / (100% + 60%) 37.5% Total goods available for sale (at cost) Sales (at selling price) Less: Gross profit (37.5% of sales) Sales (at cost) Ending inventory (at cost) (c) Gross profit is 35% of sales $ 2,300,000 862,50 0 $ 2,100,000 1,437,50 0 $ 662,500 Total goods available for sale (at cost) Sales (at selling price) Less: Gross profit (35% of sales) Sales (at cost) Ending inventory (at cost) (b) Gross profit is 25% of cost $ 2,300,000 805,00 0 $ 2,100,000 1,495,00 0 $ 605,000 2 25% / (100% + 25%) 20.0% Total goods available for sale (at cost) Sales (at selling price) Less: Gross profit (20% of sales) Sales (at cost) Ending inventory (at cost) $ 2,300,000 460,00 0 $ 2,100,000 1,840,00 0 $ 260,000 3 ...
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ACC410 E9-17 - E917 Page 473 $ 600,000 1,500,00 0 $...

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