Distinguish between gross profit as a percentage of costand gross profit as a percentage of sales price. Convertthe following gross profit percentages based on cost togross profit percentages based on sales price: 25% and331/3%. Convert the following gross profit percentagesbased on sales price to gross profit percentages based oncost: 331/3% and 60%

Distinguish between gross profit as a percentage of costand gross profit as a percentage of sales price. Convertthe following gross profit percentages based on cost togross profit percentages based on sales price: 25% and331/3%. Convert the following gross profit percentagesbased on sales price to gross profit percentages based oncost: 331/3% and 60%

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 19Q: The following is select account information for Sunrise Motors. Sales: $256,400; Sales Returns and...

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The following is select account information for August Sundries. Sales: $850,360; Sales Returns and Allowances: $148,550; COGS: $300,840; Operating Expenses: $45,770; Sales Discounts: $231,820. If August Sundries uses a multi-step income statement format, what is their gross margin?
The following is select account information for Sunrise Motors. Sales: $256,400; Sales Returns and Allowances: $34,890; COGS: $120,470; Sales Discounts: $44,760. Given this information, what is the Gross Profit Margin Ratio for Sunrise Motors? (Round to the nearest whole percentage.)
Distinguish between gross profit as a percentage of cost and gross profit as a percentage of sales price. Convert the following gross profit percentages based on cost to gross profit percentages based on sales price: 25% and 33⅓%. Convert the following gross profit percentages based on sales price to gross profit percentages based on cost: 33⅓% and 60%.
Each of the following gross profit percentages is expressed in terms of cost. 1. 22%. 2. 28%. 3. 36.67%. 4. 55%. Indicate the gross profit percentage in terms of sales for each of the above. (Round answers to 2 decimal places, e.g. 78.73%.) Gross profit in Gross profit in terms of cost terms of sales 1. 22% 2. 28% 36.67% 4. 55% 3.
The COGS is estimated by deducting the gross profit from sales revenue. Distinguish between gross profit as a percentage of cost and gross profit as a percentage of sales price and how do you convert the gross profit % based upon cost to gross profit % based upon selling price?
Concept introduction Gross profit ratio: Gross profit ratio calculated by dividng the gross profit by sales.The formula to calculate the gross profit ratio is as follows: Gross profit = Gross profit/sales Gross profit is calculated using the following formula: Gross profit= Sales-Cost of Goods Sold To choose: The correct term for excess of sales over the cost of goods sold.
For each of the following formulas, select the correct name of the formula: Sales Revenue - Sales Returns and Allowances - Sales Discounts = [ Select ] Net Sales - Cost of Goods Sold = [ Select] Beginning Inventory + Cost of Goods Purchased = Cost of Goods Available for Sale - Ending %3D Inventory = [Select ] Net Sales - Cost of Goods Sold - Operating Expenses = [Select] [ Select] Income from operations Gross profit Net sales Cost of Goods Sold
Under the gross profit method, if the gross profit rate is based on cost, the cost of sales is computed as A. Gross sales times cost ratio B. Net sales divided by sales ratio C. Net sales times cost ratio D. Gross sales divided by sales ratio
4. Compute gross profit earned by the company for each of the four costing methods. (Round your average cost per unit to 2 decimal places.) Sales Less: Cost of goods sold Gross profit FIFO LIFO Weighted Average Specific Identification
Calculate gross profit percentage and return on sales ratio
You have the following information for Kingbird Diamonds. Kingbird Diamonds uses the periodic method of accounting for its inventory transactions. Kingbird only carries one brand and size of diamonds-all are identical. Each batch of diamonds purchased is carefully coded and marked with its purchase cost. March 1 March 3 March 5 March 10 March 25 Beginning inventory 180 diamonds at a cost of €368 per diamond. Purchased 240 diamonds at a cost of €420 each. Sold 224 diamonds for €720 each. Purchased 420 diamonds at a cost of €464 each. Sold 480 diamonds for €780 each.
Use the following selected information from Whitman Corp. to determine the Year 1 and Year 2 common size percentages for cost of goods sold using Net sales as the base.