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    Jr Roque
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    The document shows inventory and sales figures for three periods. For period A, total sales were $210,300 and total purchases were $109,000. For period B, net sales in 2015 were $600,000 with a cost of goods of $396,000, resulting in a gross profit of $204,000 and a gross profit ratio of 34%. For period C, with net sales of $180,000 and purchases of $109,000, the cost of goods was $122,400, gross profit was $57,600 and gross profit ratio was 32%.

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    Principles of Accounting

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    The document shows inventory and sales figures for three periods. For period A, total sales were $210,300 and total purchases were $109,000. For period B, net sales in 2015 were $600,000 with a cost of goods of $396,000, resulting in a gross profit of $204,000 and a gross profit ratio of 34%. For period C, with net sales of $180,000 and purchases of $109,000, the cost of goods was $122,400, gross profit was $57,600 and gross profit ratio was 32%.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    2 views2 pages

    Case 9

    Uploaded by

    Jr Roque
    The document shows inventory and sales figures for three periods. For period A, total sales were $210,300 and total purchases were $109,000. For period B, net sales in 2015 were $600,000 with a cost of goods of $396,000, resulting in a gross profit of $204,000 and a gross profit ratio of 34%. For period C, with net sales of $180,000 and purchases of $109,000, the cost of goods was $122,400, gross profit was $57,600 and gross profit ratio was 32%.

    Copyright:

    © All Rights Reserved
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    of 2

    1-Jan Beginning Inventory 80,000

    31-Mar 94,000
    A

    1-Jan Beginning inventory 80,000


    31-Mar Sales 180,000
    31-Mar Purchases 94,000
    10-Apr Purchases (Cash, from cancelled cheques) 4,200
    10-Apr Sales (Cash, 40% from total deposits) 7,400
    10-Apr Purchases (On account, less FOB destination) 10,800
    10-Apr Sales (Credit, less bad debt expense) 22,900

    Total Sales 210,300


    Total Purchases 109,000

    B
    2015 2014
    Net Sales 600,000 480,000
    Cost of goods purchased 416,000 356,000
    Beginning inventory 60,000 40,000
    Ending inventory 80,000 60,000
    COGS 396,000 336,000
    Gross Profit 204,000 144,000
    Gross Profit Ratio 34% 30%
    Average 32%

    Net Sales 180000


    Cost of goods purchased 109000
    Beginning inventory 80000
    Ending inventory 66600
    COGS 122400
    Gross Profit 57600
    Gross Profit Ratio 0.32

    Gross profit= Net Sales - COGS


    Gross Profit Ratio = Gross Profit/ Net Sales
    COGS= (B.I+Purchases)-EI

    Inventory Losses 49600

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