Gross profit rate : It is a measure of the profitability of a company. Higher the value of the gross profit rate, better the profitability, a company has. It can be calculated as shown below. G r o s s p r o f i t r a t e = S a l e s − cos t o f g o o d s s o l d S a l e s × 100 % Gross profit method: Gross profit method is a technique, used to estimate the ending inventory. In this method, gross margin ratio or gross profit rate is used to estimate the ending inventory. Here, the cost of goods sold is considered as sales multiplied by one minus gross profit rate (=1-gross profit rate). Then this cost of goods sold is deducted from the total inventory, available for sale in order to estimate the ending inventory. To estimate: The cost of inventory destroyed

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Answer 1

Question

Chapter 6, Problem 22BQS

To determine

Gross profit rate:

It is a measure of the profitability of a company. Higher the value of the gross profit rate, better the profitability, a company has. It can be calculated as shown below.

Gross profit rate=Sales−cost of goods soldSales×100%

Gross profit method:

Gross profit method is a technique, used to estimate the ending inventory. In this method, gross margin ratio or gross profit rate is used to estimate the ending inventory. Here, the cost of goods sold is considered as sales multiplied by one minus gross profit rate (=1-gross profit rate). Then this cost of goods sold is deducted from the total inventory, available for sale in order to estimate the ending inventory.

To estimate:

The cost of inventory destroyed

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Answer 2

Question

Chapter 6, Problem 22BQS

To determine

Gross profit rate:

It is a measure of the profitability of a company. Higher the value of the gross profit rate, better the profitability, a company has. It can be calculated as shown below.

Gross profit rate=Sales−cost of goods soldSales×100%

Gross profit method:

Gross profit method is a technique, used to estimate the ending inventory. In this method, gross margin ratio or gross profit rate is used to estimate the ending inventory. Here, the cost of goods sold is considered as sales multiplied by one minus gross profit rate (=1-gross profit rate). Then this cost of goods sold is deducted from the total inventory, available for sale in order to estimate the ending inventory.

To estimate:

The cost of inventory destroyed

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 6, Problem 22BQS

To determine

Gross profit rate:

It is a measure of the profitability of a company. Higher the value of the gross profit rate, better the profitability, a company has. It can be calculated as shown below.

Gross profit rate=Sales−cost of goods soldSales×100%

Gross profit method:

Gross profit method is a technique, used to estimate the ending inventory. In this method, gross margin ratio or gross profit rate is used to estimate the ending inventory. Here, the cost of goods sold is considered as sales multiplied by one minus gross profit rate (=1-gross profit rate). Then this cost of goods sold is deducted from the total inventory, available for sale in order to estimate the ending inventory.

To estimate:

The cost of inventory destroyed

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Answer 4

Question

Chapter 6, Problem 22BQS

To determine

Gross profit rate:

It is a measure of the profitability of a company. Higher the value of the gross profit rate, better the profitability, a company has. It can be calculated as shown below.

Gross profit rate=Sales−cost of goods soldSales×100%

Gross profit method:

Gross profit method is a technique, used to estimate the ending inventory. In this method, gross margin ratio or gross profit rate is used to estimate the ending inventory. Here, the cost of goods sold is considered as sales multiplied by one minus gross profit rate (=1-gross profit rate). Then this cost of goods sold is deducted from the total inventory, available for sale in order to estimate the ending inventory.

To estimate:

The cost of inventory destroyed

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Answer 5

Chapter 6, Problem 22BQS

To determine

Gross profit rate:

It is a measure of the profitability of a company. Higher the value of the gross profit rate, better the profitability, a company has. It can be calculated as shown below.

Gross profit rate=Sales−cost of goods soldSales×100%

Gross profit method:

Gross profit method is a technique, used to estimate the ending inventory. In this method, gross margin ratio or gross profit rate is used to estimate the ending inventory. Here, the cost of goods sold is considered as sales multiplied by one minus gross profit rate (=1-gross profit rate). Then this cost of goods sold is deducted from the total inventory, available for sale in order to estimate the ending inventory.

To estimate:

The cost of inventory destroyed

Answer 6

Chapter 6, Problem 22BQS

To determine

Gross profit rate:

It is a measure of the profitability of a company. Higher the value of the gross profit rate, better the profitability, a company has. It can be calculated as shown below.

Gross profit rate=Sales−cost of goods soldSales×100%

Gross profit method:

Gross profit method is a technique, used to estimate the ending inventory. In this method, gross margin ratio or gross profit rate is used to estimate the ending inventory. Here, the cost of goods sold is considered as sales multiplied by one minus gross profit rate (=1-gross profit rate). Then this cost of goods sold is deducted from the total inventory, available for sale in order to estimate the ending inventory.

To estimate:

The cost of inventory destroyed

Answer 7

Chapter 6, Problem 22BQS

To determine

Gross profit rate:

It is a measure of the profitability of a company. Higher the value of the gross profit rate, better the profitability, a company has. It can be calculated as shown below.

Gross profit rate=Sales−cost of goods soldSales×100%

Gross profit method:

Gross profit method is a technique, used to estimate the ending inventory. In this method, gross margin ratio or gross profit rate is used to estimate the ending inventory. Here, the cost of goods sold is considered as sales multiplied by one minus gross profit rate (=1-gross profit rate). Then this cost of goods sold is deducted from the total inventory, available for sale in order to estimate the ending inventory.

To estimate:

The cost of inventory destroyed

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 6 - Prob. 1DQ Ch. 6 - 2. Where is the amount of merchandise inventory...Ch. 6 - Prob. 3DQ Ch. 6 - Prob. 4DQ Ch. 6 - What does the full disclosure principle prescribe...Ch. 6 - Prob. 6DQ Ch. 6 - Prob. 7DQ Ch. 6 - Prob. 8DQ Ch. 6 - Prob. 9DQ Ch. 6 - What is the meaning of market as it is used in...

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