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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This note was uploaded on 12/12/2010 for the course ACCT ACCT207 taught by Professor Dragone during the Fall '10 term at University of Delaware.
- Fall '10