This preview shows pages 1–3. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: (iii) Gross Profit (iv) Gross Profit Rate Sales $7,350.00 $3,487.00 47.44% Less: Cost of goods sold 3,863.00 $7,350.00 Gross profit $3,487.00 Average Cost (i) Ending Inventory (ii) Cost of Goods Sold $6,144.00/11 = $558.545 Cost of goods available for sale $6,144.00 Less: Ending inventory $2,234.18 Units Unit Cost Total Cost Cost of goods sold $3,909.82 4 $558.545 $2,234.18 (iii) Gross Profit (iv) Gross Profit Rate Sales $7,350.00 $3,440.18 46.81% Less: Cost of goods sold 3,909.82 $7,350.00 Gross profit $3,440.18 (d) Natalie is thinking of getting a bank loan. If this is the only factor Natalie has to con-sider in choosing an inventory cost flow assumption, which cost flow assumption would you recommend that Natalie use? Why?...
View Full Document
- Spring '11