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Calculating Gross Profit on Sales Using the four inventory costing methods, Shutterbug
Chapter 25, Problem 25-6(choose chapter or problem)
Calculating Gross Profit on Sales
Using the four inventory costing methods, Shutterbug Cameras summarized the cost of its ending inventory as follows:
Specific First-In, Last-In, Weighted
Identification First-Out First-Out Average Cost
$21,476.00 $21,581.40 $21,410.93 $21,447.36
Shutterbug Cameras also reported the following amounts:
Net sales $53,874.92
Purchases available for sale 57,621.31
Instructions Using the preceding information, determine the cost of merchandise sold and the gross profit on sales for each of the inventory costing methods.
Analyze Conclude which method resulted in the largest gross profit on sales.
Questions & Answers
QUESTION:
Calculating Gross Profit on Sales
Using the four inventory costing methods, Shutterbug Cameras summarized the cost of its ending inventory as follows:
Specific First-In, Last-In, Weighted
Identification First-Out First-Out Average Cost
$21,476.00 $21,581.40 $21,410.93 $21,447.36
Shutterbug Cameras also reported the following amounts:
Net sales $53,874.92
Purchases available for sale 57,621.31
Instructions Using the preceding information, determine the cost of merchandise sold and the gross profit on sales for each of the inventory costing methods.
Analyze Conclude which method resulted in the largest gross profit on sales.
ANSWER:Step 1 of 4
Gross profit can be defined as the benefits generated from the operating activities over the direct cost incurred in the business operation. Such profit is calculated by deducting the cost of sales from the total sales value.