Your answer is incorrect. Try again. Presented below is information related to F

Question

Your answer is incorrect. Try again. Presented below is information related to Flint Corporation for the current year. Beginning inventory Purchases Total goods available for sale Sales revenue $607,100 1,484,500 $2,091,600 2,530,000 and a s 25% of cost. Compute the ending inventory, assuming that a) gross profit is 49% of sales. (b) gross profit is 50 cost de gross profit is 37% of sa (Round ratios for computational purposes to 1 decimal place, e.g. 78.7% and final answers to 0 decimal places, eg. 28,98.) ross p o Ending Inventory (a) (b) (c) (d) Gross profit is 49% of sales Gross profit is 60% of cost Gross profit is 37% of sales Gross profit is 25% of cost 801100 1079600 1497100 194100

Explanation / Answer

Note for understanding : Sales - Gross Profit = COGS

Ending Inventory = Total Goods available for sales - COGS  

Answer a

GrossProfit is 49% of sales = $2,530,000 *49 % = $1,239,700

COGS = $2,530,000 - $1,239,700 = $1,290,300

Ending Inventory = $2,091,600 - $1,290,300 = $801,300

Answer b

GrossProfit is 60% of cost (here cost means Cost of goods sold)

COGS + Gross profit = Sales

* Let the COGS be $ 100 than Gross profit = $ 60 & sales = $160

thus Gross profit is (60 / 160) ie 37.50 % of sales

COGS = $2,530,000 - ($2,530,000 * 37.50 %) = $1,581,250

Ending Inventory = $2,091,600 - $1,581,250 = $510,350

Answer c

GrossProfit is 37% of sales = $2,530,000 *37 % = $936,100

COGS = $2,530,000 - $936,100 = $1,593,900

Ending Inventory = $2,091,600 - $1,593,900 = $497,700

Answer d

GrossProfit is 25% of cost (here cost means Cost of goods sold)

COGS + Gross profit = Sales

* Let the COGS be $ 100 than Gross profit = $ 25 & sales = $125

thus Gross profit is (25 / 125) ie 20 % of sales

COGS = $2,530,000 - ($2,530,000 * 20 %) = $2,024,000

Ending Inventory = $2,091,600 - $2,024,000 = $67,600

Related Questions

Navigate

• Browse (All)
• Browse Y
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.