grossprofit ch 5 handout key

# grossprofit ch 5 handout key - If Gross Profit Rate is 30...

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file: handout 2 ch 5 key dgd:08.10 Gross Profit Rate Problems I. Beginning Inventory 100000 Plus: Purchases ? 102500 Goods Available for Sale 202500 Less: Ending Inventory 150000 Cost of Goods Sold x 52500 Solve for x by using Gross Profit Rate: If Gross Profit Rate is 30%, then COGS must be 70% of Sales (Sales)(.70) or \$75,000 x .70 = 52,500 II. Beginning Inventory 11500 Plus: Purchases 62000 Goods Available for Sale 73500 Less: Ending Inventory ? 14700 Cost of Goods Sold x 58800 Solve for x by using Gross Profit Rate:
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Unformatted text preview: If Gross Profit Rate is 30%, then COGS must be 70% of Sales (Sales)(.70) or \$84,000 x .70 = 58,800 III. Beginning Inventory 80000 Plus: Purchases 280000 Goods Available for Sale 360000 Less: Ending Inventory ? 120000 Cost of Goods Sold x 240000 Solve for x by using Gross Profit Rate: If Gross Profit Rate is 40%, then COGS must be 60% of Sales (Sales)(.60) or \$400,000 x .60 = 240,000...
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