Financial Accounting
3rd Edition
ISBN: 9780133791129
Author: Jane L. Reimers
Publisher: Pearson Higher Ed
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Textbook Question
Chapter 5, Problem 31EA
Given the following information, calculate the gross profit and gross profit ratio under (a) FIFO periodic and under (b) LIFO periodic:
Sales 250 units at $ 100 per unit
Beginning inventory 75 units at $75 per unit
Purchases 300 units at $60 per unit
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Given the following data, calculate the cost of goods sold using the average-cost method. Round average cost per unit calculations to two decimal places. Round final answer to the nearest dollar.
Item
Date
Unit
Beginning inventory
Purchase of inventory
Purchase of inventory
Ending inventory
30 units at $30 per unit
10 units at $10 per unit
10 units at $22 per unit
48 units
1/1
5/10
10/9
1231
OA $1,903
OB. $49
EE
OC. $51
OD. $1,220
How is the gross profit percentagecomputed? Illustrate its calculation and interpretationassuming Net Sales is $100,000 and Cost of Goods Sold is$60,000.
The following information relates to CEE Company: (Refer to image).
Assume that the company uses the average cost approach. What is the
cost ratio? Express your answer in percentage and round up to two
decimal points. *
Retail
Cost
500,000.00
Inventory, 12/31/2021
725,000.00
Purchases
1,285,000.00
2,220,000.00
Purchase returns
20,000.00
35,000.00
Purchase discounts
30,000.00
Sales (after employee discounts)
2,450,000.00
Sales returns
125,000.00
Sales allowances
70,000.00
Mark-ups
Mark-up cancellations
160,000.00
70,000.00
Mark-down
65,000.00
Mark-down cancellations
32,000.00
Freight in
Employee discounts
Normal loss from breakage
65,000.00
15,000.00
10,000.00
Chapter 5 Solutions
Financial Accounting
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