The following is a list of selected events for Unger Sales and Service for year 2012. Unger uses a perpetual inventory system and had a zero inventory balance prior to these transactions. 1) Purchased merchandise on account for $67,000. 2) Sold inventory costing $48,000 for $88,000 on account. 3) Paid transportation-out cost of $1,000 on goods sold. 4) Paid salary expense of $25,000. 5) A count of the inventory revealed that there was $18,500 of inventory on hand at the end of 2012. Compute the gross margin for 2012 for Unger.
The following is a list of selected events for Unger Sales and Service for year 2012. Unger uses a perpetual inventory system and had a zero inventory balance prior to these transactions. 1) Purchased merchandise on account for $67,000. 2) Sold inventory costing $48,000 for $88,000 on account. 3) Paid transportation-out cost of $1,000 on goods sold. 4) Paid salary expense of $25,000. 5) A count of the inventory revealed that there was $18,500 of inventory on hand at the end of 2012. Compute the gross margin for 2012 for Unger.
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter7: Inventories
Section: Chapter Questions
Problem 4PEB: Beginning inventory, purchases, and sales for WCS12 are as follows: Assuming a perpetual inventory...
Related questions
Question
cost account
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,