320CheckFigures_09 - d(f This is sales less cost of goods...

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CHAPTER 9 Inventories: Additional Valuation Issues EXERCISE 9-16 We normally see profit measured as a % of sales. E.g. An item that costs $40 and has a selling price of $100 would have a profit % of 60% (= profit of $60/selling price of $100). This problem measures profit as a % of cost, not as a % of selling price. Hint for cost of goods sold computation: Sales – COGS = % of gross profit on cost (COGS) For lumber: $2,050,000 – X = .25X EXERCISE 9-18 (e) This is cost of goods available less ending inventory at cost (which will be answer
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Unformatted text preview: d). (f) This is sales less cost of goods sold from answer e. EXERCISE 9-20 Group the markups and markup cancellations to find the net markups. Group the markdowns and markdown cancellations to find the net markdowns. The cancellations will offset the markups/markdowns. EXERCISE 9-24 1/1/10 is the base year, so the cost index is 1.00 for the beginning layer. 9-1...
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This note was uploaded on 11/22/2010 for the course ACCT 320 taught by Professor Alee during the Spring '10 term at Kansas State University.

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