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Merchandise Inventory Sales 75,000.00 85,500.00 COGS 53,571.43 3,200.00 Gross Profit 21,428.57 12,142.86 15,714.29 The jaguar merchandising uses a perpetual inventory system. The gross profit is 40% based on cost. Thus, to compute the cost of goods sold in sales transaction, the 25,714.29 28,728.56 amounts were divided to 140% or 1.40. The jaguar merchandising has an unadjusted trial balance in inventory of 28,728.56 and 53,571.43 cost of Sales 17,000.00 goods sold. However, the merchandise inventory at the end of the month is 10,500 based on physical count. If the amount in the record will be used to compute gross profit. It shows that the gross profit (21,428.57) is 40% of cost, so it is correct. 22,000.00 36,000.00 75,000.00 COGS What should be done to match the record to the 12,142.86 physical count of inventory? The gross profit must be 15,714.29 still 40%? 25,714.29 53,571.43

Merchandise Inventory Sales 75,000.00 85,500.00 COGS 53,571.43 3,200.00 Gross Profit 21,428.57 12,142.86 15,714.29 The jaguar merchandising uses a perpetual inventory system. The gross profit is 40% based on cost. Thus, to compute the cost of goods sold in sales transaction, the 25,714.29 28,728.56 amounts were divided to 140% or 1.40. The jaguar merchandising has an unadjusted trial balance in inventory of 28,728.56 and 53,571.43 cost of Sales 17,000.00 goods sold. However, the merchandise inventory at the end of the month is 10,500 based on physical count. If the amount in the record will be used to compute gross profit. It shows that the gross profit (21,428.57) is 40% of cost, so it is correct. 22,000.00 36,000.00 75,000.00 COGS What should be done to match the record to the 12,142.86 physical count of inventory? The gross profit must be 15,714.29 still 40%? 25,714.29 53,571.43

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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Merchandise Inventory Sales 75,000.00 85,500.00 COGS 53,571.43 3,200.00 Gross Profit 21,428.57 12,142.86 The jaguar merchandising uses a perpetual inventory system. The gross profit is 40% based on cost. Thus, to compute the cost of goods sold in sales transaction, the 15,714.29 25,714.29 28,728.56 amounts were divided to 140% or 1.40. The jaguar merchandising has an unadjusted trial balance in inventory of 28,728.56 and 53,571.43 cost of Sales 17,000.00 goods sold. However, the merchandise inventory at the end of the month is 10,500 based on physical count. 22,000.00 36,000.00 75,000.00 If the amount in the record will be used to compute gross profit. It shows that the gross profit (21,428.57) is 40% of cost, so it is correct. COGS What should be done to match the record to the 12,142.86 physical count of inventory? The gross profit must be 15,714.29 still 40%? 25,714.29 53,571.43
Transcribed Image Text:Merchandise Inventory Sales 75,000.00 85,500.00 COGS 53,571.43 3,200.00 Gross Profit 21,428.57 12,142.86 The jaguar merchandising uses a perpetual inventory system. The gross profit is 40% based on cost. Thus, to compute the cost of goods sold in sales transaction, the 15,714.29 25,714.29 28,728.56 amounts were divided to 140% or 1.40. The jaguar merchandising has an unadjusted trial balance in inventory of 28,728.56 and 53,571.43 cost of Sales 17,000.00 goods sold. However, the merchandise inventory at the end of the month is 10,500 based on physical count. 22,000.00 36,000.00 75,000.00 If the amount in the record will be used to compute gross profit. It shows that the gross profit (21,428.57) is 40% of cost, so it is correct. COGS What should be done to match the record to the 12,142.86 physical count of inventory? The gross profit must be 15,714.29 still 40%? 25,714.29 53,571.43
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