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Mark up cost structure example with example of Margin cost structure Sales       125%                                                      Sales         100% CoS         (100%)                                                   CoS            (75%) Gross Profit 25%.                                                   Gross Profit 25%   The draft accounts of Astel Co. for the year ended 31st Jan 2020 include the following:           Revenue            $80,000           Gross profit        $20,000 It was subsequently discovered that revenue had been understated by $10,000 and closing inventory overstated by $5,000.

Mark up cost structure example with example of Margin cost structure Sales       125%                                                      Sales         100% CoS         (100%)                                                   CoS            (75%) Gross Profit 25%.                                                   Gross Profit 25%   The draft accounts of Astel Co. for the year ended 31st Jan 2020 include the following:           Revenue            $80,000           Gross profit        $20,000 It was subsequently discovered that revenue had been understated by $10,000 and closing inventory overstated by $5,000.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Mark up cost structure example with example of Margin cost structure

Sales       125%                                                      Sales         100%
CoS         (100%)                                                   CoS            (75%)
Gross Profit 25%.                                                   Gross Profit 25%

 

The draft accounts of Astel Co. for the year ended 31st Jan 2020 include the following:

          Revenue            $80,000
          Gross profit        $20,000
It was subsequently discovered that revenue had been understated by $10,000 and closing inventory overstated by $5,000.

1. After correction of these errors the gross profit percentage margin will be (to 1 d.p.)?

 

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