(1) Gross margin ratio means that ratio which shows the profitability of the company. This ratio is compared with the sale and gross profit. Indirectly this ratio shows the cost of goods sold percentage. Gross profit shows that the difference between the sale and cost of goods sold. To compute: The gross profit ratio for company-A for the years 2016 and 2017.

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Answer 1

Question

Chapter 2, Problem 2AA

To determine

(1)

Gross margin ratio means that ratio which shows the profitability of the company. This ratio is compared with the sale and gross profit. Indirectly this ratio shows the cost of goods sold percentage. Gross profit shows that the difference between the sale and cost of goods sold.

To compute:

The gross profit ratio for company-A for the years 2016 and 2017.

To determine

(2)

Gross margin ratio means that ratio which shows the profitability of the company. This ratio is compare with the sale and gross profit. Indirectly this ratio shows the cost of goods sold percentage. Gross profit shows that the difference between the sale and cost of goods sold.

To compute:

Calculate the gross profit ratio for company-B for the last two year 2016 and 2017.

To determine

(3)

Cost of control is the normal practice that identify the business expense and continue the control the expense and increase the profit as possible. Before the control the expense prepare a proper budget then identify.

To compare:

Compare the result for the company A and company B of cost control in 2017.

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Please help me solve this general accounting question using the right accounting principles.

Blair Equipment Co. of New Zealand manufactures outdoor gear. One of the company's products, a hiking backpack for the Asian market, requires a special nylon fabric. During the quarter ending June 30, the company manufactured 4,200 backpacks, using 3,150 meters of fabric. The fabric cost the company $24,570. According to the standard cost card, each backpack should require 0.72 meters of fabric, at a cost of $7.50 per meter. According to the standards, what cost for fabric should have been incurred to make 4,200 backpacks? How much greater or less is this than the cost that was incurred?

I am looking for the most effective method for solving this financial accounting problem.

Answer 2

Question

Chapter 2, Problem 2AA

To determine

(1)

Gross margin ratio means that ratio which shows the profitability of the company. This ratio is compared with the sale and gross profit. Indirectly this ratio shows the cost of goods sold percentage. Gross profit shows that the difference between the sale and cost of goods sold.

To compute:

The gross profit ratio for company-A for the years 2016 and 2017.

To determine

(2)

Gross margin ratio means that ratio which shows the profitability of the company. This ratio is compare with the sale and gross profit. Indirectly this ratio shows the cost of goods sold percentage. Gross profit shows that the difference between the sale and cost of goods sold.

To compute:

Calculate the gross profit ratio for company-B for the last two year 2016 and 2017.

To determine

(3)

Cost of control is the normal practice that identify the business expense and continue the control the expense and increase the profit as possible. Before the control the expense prepare a proper budget then identify.

To compare:

Compare the result for the company A and company B of cost control in 2017.

Expert Solution & Answer

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Answer 3

Question

Chapter 2, Problem 2AA

To determine

(1)

Gross margin ratio means that ratio which shows the profitability of the company. This ratio is compared with the sale and gross profit. Indirectly this ratio shows the cost of goods sold percentage. Gross profit shows that the difference between the sale and cost of goods sold.

To compute:

The gross profit ratio for company-A for the years 2016 and 2017.

To determine

(2)

Gross margin ratio means that ratio which shows the profitability of the company. This ratio is compare with the sale and gross profit. Indirectly this ratio shows the cost of goods sold percentage. Gross profit shows that the difference between the sale and cost of goods sold.

To compute:

Calculate the gross profit ratio for company-B for the last two year 2016 and 2017.

To determine

(3)

Cost of control is the normal practice that identify the business expense and continue the control the expense and increase the profit as possible. Before the control the expense prepare a proper budget then identify.

To compare:

Compare the result for the company A and company B of cost control in 2017.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 2, Problem 2AA

To determine

(1)

Gross margin ratio means that ratio which shows the profitability of the company. This ratio is compared with the sale and gross profit. Indirectly this ratio shows the cost of goods sold percentage. Gross profit shows that the difference between the sale and cost of goods sold.

To compute:

The gross profit ratio for company-A for the years 2016 and 2017.

To determine

(2)

Gross margin ratio means that ratio which shows the profitability of the company. This ratio is compare with the sale and gross profit. Indirectly this ratio shows the cost of goods sold percentage. Gross profit shows that the difference between the sale and cost of goods sold.

To compute:

Calculate the gross profit ratio for company-B for the last two year 2016 and 2017.

To determine

(3)

Cost of control is the normal practice that identify the business expense and continue the control the expense and increase the profit as possible. Before the control the expense prepare a proper budget then identify.

To compare:

Compare the result for the company A and company B of cost control in 2017.

Expert Solution & Answer

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Answer 5

Chapter 2, Problem 2AA

To determine

(1)

Gross margin ratio means that ratio which shows the profitability of the company. This ratio is compared with the sale and gross profit. Indirectly this ratio shows the cost of goods sold percentage. Gross profit shows that the difference between the sale and cost of goods sold.

To compute:

The gross profit ratio for company-A for the years 2016 and 2017.

To determine

(2)

Gross margin ratio means that ratio which shows the profitability of the company. This ratio is compare with the sale and gross profit. Indirectly this ratio shows the cost of goods sold percentage. Gross profit shows that the difference between the sale and cost of goods sold.

To compute:

Calculate the gross profit ratio for company-B for the last two year 2016 and 2017.

To determine

(3)

Cost of control is the normal practice that identify the business expense and continue the control the expense and increase the profit as possible. Before the control the expense prepare a proper budget then identify.

To compare:

Compare the result for the company A and company B of cost control in 2017.

Answer 6

Chapter 2, Problem 2AA

To determine

(1)

Gross margin ratio means that ratio which shows the profitability of the company. This ratio is compared with the sale and gross profit. Indirectly this ratio shows the cost of goods sold percentage. Gross profit shows that the difference between the sale and cost of goods sold.

To compute:

The gross profit ratio for company-A for the years 2016 and 2017.

Answer 7

Chapter 2, Problem 2AA

To determine

(1)

Gross margin ratio means that ratio which shows the profitability of the company. This ratio is compared with the sale and gross profit. Indirectly this ratio shows the cost of goods sold percentage. Gross profit shows that the difference between the sale and cost of goods sold.

To compute:

The gross profit ratio for company-A for the years 2016 and 2017.

Answer 8

To determine

(2)

Gross margin ratio means that ratio which shows the profitability of the company. This ratio is compare with the sale and gross profit. Indirectly this ratio shows the cost of goods sold percentage. Gross profit shows that the difference between the sale and cost of goods sold.

To compute:

Calculate the gross profit ratio for company-B for the last two year 2016 and 2017.

Answer 9

To determine

(2)

Gross margin ratio means that ratio which shows the profitability of the company. This ratio is compare with the sale and gross profit. Indirectly this ratio shows the cost of goods sold percentage. Gross profit shows that the difference between the sale and cost of goods sold.

To compute:

Calculate the gross profit ratio for company-B for the last two year 2016 and 2017.

Answer 10

To determine

(3)

Cost of control is the normal practice that identify the business expense and continue the control the expense and increase the profit as possible. Before the control the expense prepare a proper budget then identify.

To compare:

Compare the result for the company A and company B of cost control in 2017.

Answer 11

To determine

(3)

Cost of control is the normal practice that identify the business expense and continue the control the expense and increase the profit as possible. Before the control the expense prepare a proper budget then identify.

To compare:

Compare the result for the company A and company B of cost control in 2017.

Answer 12

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Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

Ch. 2 - Prob. 1MCQ Ch. 2 - A company uses direct labor costs to apply...Ch. 2 - Prob. 3MCQ Ch. 2 - Prob. 4MCQ Ch. 2 - Prob. 5MCQ Ch. 2 - Prob. 1DQ Ch. 2 - Some companies use labor cost to apply factory...Ch. 2 - Prob. 3DQ Ch. 2 - Prob. 4DQ Ch. 2 - Prob. 5DQ

Solution Summary: The author compares the gross profit ratio for company A and company B for the last two years 2016 and 2017.

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