Atlas Manufacturing sold inventory for $12,500. The cost of the inventory was $8,200. The sale had terms of 2/10, n/45, FOB shipping point. Atlas paid $450 in freight. The customer paid within the discount period. What is the gross margin? a. $4,300 b. $3,850 c. $4,050 d. $4,250

Atlas Manufacturing sold inventory for $12,500. The cost of the inventory was $8,200. The sale had terms of 2/10, n/45, FOB shipping point. Atlas paid $450 in freight. The customer paid within the discount period. What is the gross margin? a. $4,300 b. $3,850 c. $4,050 d. $4,250

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 2MC: The following information is available for Cooke Company for the current year: The gross margin is...

See similar textbooks

Related questions

Q: subject general accounting

A: Step 1: Definition of Debt-to-Equity RatioThe debt-to-equity ratio is a financial leverage ratio…

Q: Help me this question

A: Step 1: Definition of Cost of LandThe cost of land includes all expenditures made to acquire the…

Q: I need help with general accounting

A: 1. Direct Materials:Quantity Standard: 0.25 kg per casePrice Standard: $18 per kgStandard Material…

Q: What is the sustainable growth rate?

A: Given Information:Total Asset Turnover = 2.80Profit Margin = 6.0%Equity Multiplier = 1.50Payout…

Q: A machine costing $400,000 has a salvage value of $40,000 and a useful life of 12 years. They expect…

A: Concept of Cost of Machine:This refers to the total amount paid to acquire the machine, including…

Q: I am looking for help with this general accounting question using proper accounting standards.

A: Step 1: Calculate Total SalesUnits Sold = 390,000Selling Price per Jersey = $18.00Total Sales =…

Q: Accounting

A: Step 1: Definition of Break-Even and Target Profit AnalysisTarget profit analysis determines the…

Q: Please help me solve this general accounting problem with the correct financial process.

A: The Times Interest Earned (TIE) ratio measures a company's ability to meet its interest obligations…

Q: Please provide the accurate answer to this general accounting problem using valid techniques.

A: Step 1: Definition of Full CostThe full cost of manufacturing and selling a product includes all…

Q: I need help with this financial accounting question using the proper financial approach.

A: Step 1: Define Debt-to-Equity RatioThe debt-to-equity ratio measures a company's financial leverage…

Q: Solve this

A: Provided Data:Original cost of printer = $24,800Accumulated depreciation = $21,350The printer is…

Q: calculate the net sales for the fiscal year?

A: Step 1: Definition of Net SalesNet sales represent the revenue from goods sold or services provided,…

Q: correct solution this accounting question

A: Step 1: Definition of Labor VariancesLabor Rate Variance (LRV) measures the difference between the…

Q: Direct materials:2454, Direct labor hours:71

A: Explanation of Job Cost Sheet: A job cost sheet is a document used in a job costing system to…

Q: Hy expert give me answer

A: Step 1: Definition of Effective Interest MethodThe effective interest method amortizes bond…

Q: return on assets ?

A: To calculate the Return on Assets (ROA), use this formula: ROA = (Net Income ÷ Average Total Assets)…

Q: A machine is purchased for $25,000 and has a salvage value of $3,000.

A: Concept of Depreciation:Depreciation is the process of allocating the cost of a tangible fixed asset…

Q: given answer with calculation

A: Step 1: Definition of Predetermined Overhead RatePredetermined overhead rate is an estimated rate…

Q: Please provide the solution to this financial accounting question with accurate financial…

A: Step 1: Definition of Cost of Goods Sold (COGS)Cost of Goods Sold (COGS) refers to the direct costs…

Q: what is the total stockholders equity that summit industries ltd should report ?

A: Step 1: Definition of Stockholders' EquityStockholders' equity represents the ownership interest of…

Q: I am looking for the correct answer to this general accounting problem using valid accounting…

A: Horizontal analysis involves comparing financial data over time to see how amounts have changed.…

Q: Please provide the solution to this financial accounting question with accurate financial…

A: To calculate the operating margin, use the formula: Operating Margin = (Net Operating Income /…

Q: Can you help me solve this financial accounting question using valid financial accounting…

A: Step 1: Define Interest Expense Adjusting EntryAn interest expense adjusting entry recognizes the…

Q: ??

A: Step 1: Definition of Direct Method AllocationThe Direct Method of cost allocation assigns support…

Q: The lower of costor net realizable value rule is an application of? a) Monetary unit assumption b)…

A: Explanation of Conservatism Principle:The conservatism principle guides accountants to choose the…

Q: Hello tutor please help me

Q: Hello tutor please help me this question

A: Step 1: Definition of Inventory ShrinkageInventory shrinkage is the loss of inventory due to theft,…

Q: give me answer with calculation

A: To calculate the debt-to-equity ratio, use this formula: Debt-to-Equity Ratio = Total Liabilities ÷…

Q: A retail store's cost of goods sold is $210,000, and its desired gross profit rate is 30% on sales.…

A: Explanation of Cost of Goods Sold (COGS):Cost of Goods Sold (COGS) refers to the direct costs…

Q: Manufacturing overhead to the cost of goods sold.

A: Provided Data:Beginning Finished Goods Inventory = $72,000Ending Finished Goods Inventory =…

Q: Can you explain the steps for solving this General accounting question accurately?

A: Step 1: Define Gross ProfitGross profit is the amount remaining from sales revenue after subtracting…

Q: Can you explain the steps for solving this General accounting question accurately?

A: Step 1: Definition of Dividend Per Share (DPS)Dividend Per Share (DPS) is the amount of dividend a…

Q: Acme Corporation's pension plan assets were$3,420 million at the beginning of the year and $3,880…

A: Here's how to calculate the percentage rate of return on the plan assets: 1. Calculate the net…

Q: Solve with explanation and accounting question

A: Step 1: Definition of Bad Debt Expense (Allowance Method)Bad Debt Expense under the Allowance Method…

Q: The difference between total revenues and total variable costs is known as ______________…

A: The correct answer is: Contribution marginExplanation:Contribution Margin = Total Revenues - Total…

Q: I need help finding the accurate solution to this general accounting problem with valid methods.

A: Step 1: Definition of Accounts Receivable Turnover and Days' Sales in ReceivablesAccounts Receivable…

Q: Given the following information for OLD Electronics, what is the gross margin percentage?

A: Concept of Sales:Sales represent the total revenue earned from selling goods or services before any…

Q: Right answer

A: Explanation Of Materiality: Materiality in accounting refers to the significance of a financial item…

Q: Financial accounting

A: ROA (Return on Assets) = Net Income / Total Assets × 100Net Income = Profit Margin × Sales= 8.5% ×…

Q: Please provide the solution to this financial accounting question with accurate financial…

A: Step 1: Definition of Average Collection PeriodThe average collection period measures the average…

Q: Sub.. Financial Account

A: To calculate the Accounts Receivable Turnover, use this formula: Accounts Receivable Turnover = Net…

Q: what is the correct option

A: To calculate the direct materials price variance, we use the formula: Price Variance=(Actual…

Q: I am searching for the correct answer to this general accounting problem with proper accounting…

A: Step 1: Define Net IncomeNet income is the excess of total revenues over total expenses during an…

Q: Financial accounting

A: Step 1: Definition of Beginning InventoryBeginning Inventory is the value of the inventory that a…

Q: how many dollars woth of sale are generated from every s1 in total assets ? accounting

A: Step 1: Definition of Total Asset TurnoverTotal asset turnover is a financial ratio that measures a…

Q: Financial Accounting

A: Step 1: Define Operating MarginOperating Margin measures how much profit a company makes from its…

Q: Please provide the correct answer to this general accounting problem using valid calculations.

A: Step 1: Definition of FIFO (First-In, First-Out) MethodThe FIFO method assumes that the first units…

Q: The income Statement shows income of $ 95,000 and expenses of $50,000

A: Concept of Assets:Assets are resources owned by a business that are expected to provide future…

Q: How many units would the company have to sell to attain target profits of Rs. 600,000? 88,000 units…

A: To determine how many units the company needs to sell to achieve a target profit of Rs. 600,000, we…

Q: Please explain this financial accounting problem with accurate financial standards.

A: Concept of RevenuesRevenues represent the total income a company earns from its core business…

Question

I need guidance with this general accounting problem using the right accounting principles.

Atlas Manufacturing sold inventory for $12,500. The cost of the inventory
was $8,200. The sale had terms of 2/10, n/45, FOB shipping point. Atlas paid
$450 in freight. The customer paid within the discount period. What is the
gross margin?
a. $4,300
b. $3,850
c. $4,050
d. $4,250

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

The following information is available for Cooke Company for the current year: The gross margin is 40% of net sales. What is the cost of goods available for sale? a. 5840,000 b. 960,000 c. 1,200,000 d. 1,220,000
Kulsrud Company would like to estimate the current inventory level. Using the gross profit method and the following information, estimate the current inventory level for Kulsrud Company. Goods available for sale 100,000 Net sales 150,000 Normal gross profit as a percent of sales 40%
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.)
Johnson Corporation had beginning inventory of 20,000 at cost and 35,000 at retail. During the year, it made net purchases of 180,000 at cost and 322,000 at retail. Johnson nude sales of 300,000. Assuming a price index of 100 at the beginning of the year and 110 at the end of the year, compute Johnsons ending inventory at cost using the dollar-value LIFO retail method.
Analyzing the Accounts Casey Company uses a perpetual inventory system and engaged in the following transactions: a. Made credit sales of $825,000. The cost of the merchandise sold was $560,000. b. Collected accounts receivable in the amount of $752,600. c. Purchased goods on credit in the amount of $574,300. d. Paid accounts payable in the amount of $536,200. Required: Prepare the journal entries necessary to record the transactions. Indicate whether each transaction increased cash, decreased cash, or had no effect on cash.
If a customer purchased merchandise in the amount of $340, terms 3/10, n/30, returned $70 of the inventory for a full refund, and received an allowance for $65, how much discount would be applied if the customer remitted payment within the discount window?
If a retailer purchased inventory in the amount of $680, terms 3/10, n/60, returned $120 of the inventory for a full refund, and received an allowance for $70, how much would the discount be if the retailer remitted payment within the discount window?
Calculate the gross margin.
??
What is the gross margin of this financial accounting question?
Lindsey Corporation had the following account balances:Sales revenue $200,000Beginning inventory 40,000Purchases 80,000Purchase discounts 3,000Freight-in 1,000Ending inventory 30,000Purchases returns and allowances 2,000 With the perpetual inventory system, which of the following entries would be made when inventory costing $3,600 is sold for $5,000?a. Cost of goods sold 3,600Inventory 3,600b. Inventory 5,000Accounts payable 5,000c. Inventory 3,600Cost of goods sold 5,000Accounts payable 3,600Purchases 5,000d. Purchases 5,000
Austin Sound sold inventory for $300,000, terms 2/10, n/30. Cost of goods sold was $152,000. How much sales revenue will Austin Sound report from the sale? $152,000 3294,000 $148,960 $300,000