Gross Profit Method: Inventory and Sales Costs Ernst Equipment

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• Accounting MCQ: inventory, equipment cost, R&D, liabilities.

  271086 Accounting MCQ: inventory, equipment cost, R&D, liabilities. gross profit method Gomez Company had a gross profit of $360,000, total purchases of $420,000, and an ending inventory of $240,000 in its first year of operations as a retailer.

• For the year ended December 31,2005, how much income should Hazard recognize from the lease transaction?

  of Gross profit (income) 1 Sales and cost of sales are recorded in the usual manner.

• Net Realizable Value Method

  use that information to determine gross profit and ending inventory values for the products.

• T&R Company

  30% of direct labor costs, how much gross profit was realized from this sale?

• Inventory calculations

  Gross Profit = Sales - cost of goods sold = 10,700-7,664= 3,036 Gross Profit rate = Gross Profit/Sales = 3,036/10,700 = 28.4% (b) Since the prices are rising, FIFO results in the highest gross profit as it matches the earliest costs which are lower

• MEGAFRAME COMPUTER COMPANY Balance Sheet as of 12/31/2006

  Income Statement For the Year Ended 12/31/2006 Sales (all on credit) $720,000 Cost of Goods Sold 500,000 Gross Profit $220,000 Sales and Administrative Expense 20,000 Depreciation 40,000 Operating Profit $160,000 Interest Expense 16,000 Profit

• Gross Profit and Ending Inventory FIFO and LIFO

  357774 Gross Profit and Ending Inventory FIFO and LIFO Converse Supplies produces a product with the following costs as of July 1, 2009.

• inventory

  Each dollar of missing inventory at cost is a dollar less of gross profit, then net profit, also.

• Retail Inventory Method for Greene Company

  , and (b) gross profit is 25% of the cost of goods sold.