Question

At the beginning of the year, Pina Colada had an inventory of $560000. During the year,...

At the beginning of the year, Pina Colada had an inventory of $560000. During the year, the company purchased goods costing $2400000. If Pina Colada reported ending inventory of $880000 and sales of $3640000, their cost of goods sold and gross profit rate would be?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

1. COGS : Cost of Goods Sold = Opening Inventory + Purchases - Closing Inventory.

As per Facts,

Opening Inventiry = $5,60,000

Purchses Made during the year = $ 2,400,000

Closing Inventory = $ 880000

Sale ( Assumed as on Net basis) = $3640000

So as per Formulae stated above COGS is =  $5,60,000 + $ 2,400,000 - $ 880000 = $ 2080000

COGS Rate =  $ 2080000 / $3640000 = 57.14 %

2. Gross Profit: Gross Profit / Net of Sales

Gross Profit = Net Sales - COGS =  $3640000 -  $ 2080000 = $1560000

Gross profit rate =  $1560000 /  $3640000 = 42.85%

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The accounting records of Pina Colada Corp. show the following data. Beginning inventory 4,000 units at...
The accounting records of Pina Colada Corp. show the following data. Beginning inventory 4,000 units at $4 Purchases 8,500 units at $6 Sales 10,000 units at $9 Your answer is incorrect. Try again. Calculate average unit cost. (Round answer to 3 decimal places, e.g. 5.125.) Average unit cost $enter average unit cost in dollars per unit Your answer is partially correct. Try again. Determine cost of goods sold during the period under a periodic inventory system using the FIFO method,...
Baldwin Company had the following balances and transactions during? 2019: Beginning Merchandise Inventory as of January?...
Baldwin Company had the following balances and transactions during? 2019: Beginning Merchandise Inventory as of January? 1, 2019 150 units at $82 March 10 Sold 80 units June 10 Purchased 270 units at $84 October 30 Sold 230 units What would be reported as Cost of Goods Sold on the income statement for the year ending December? 31, 2019 if the perpetual inventory system and the first??in,First?out inventory costing method are? used? A. $25,740 B. $19,180 C. $12,300 D. $34,980
Jameson Company had the following balances and transactions during? 2019: Beginning Merchandise Inventory as of January?...
Jameson Company had the following balances and transactions during? 2019: Beginning Merchandise Inventory as of January? 1, 2019 160 units at $72 March 10 Sold 80 units June 10 Purchased 100 units at $79 October 30 Sold 100 units What would be reported for Cost of Goods Sold on the income statement for the year ending December? 31, 2019 if the perpetual inventory system and the Lastminus??in, first?out inventory costing method are? used? A. $5,760 B. $12,960 C. $13,660 D....
Pina Colada Limited reports the following information: sales $1,114,000; sales returns and allowances $23,000; sales discounts...
Pina Colada Limited reports the following information: sales $1,114,000; sales returns and allowances $23,000; sales discounts $18,800; cost of goods sold $650,600; administrative expenses $158,600; selling expenses $109,300; other revenues $25,100; other expenses $35,600; and income tax expense $28,300. Assume Pina Colada uses a multiple-step income statement. calculate net sales gross profit income from operations income before tax net income
Baldwin, Inc. had the following balances and transactions during 2019: Beginning Merchandise Inventory as of January...
Baldwin, Inc. had the following balances and transactions during 2019: Beginning Merchandise Inventory as of January 1, 2019 125 units at $81 March 10 Sold 50 units June 10 Purchased 225 units at $86 October 30 Sold 175 units What would be reported as Cost of Goods Sold on the income statement for the year ending December 31, 2019 if the perpetual inventory system and the first− in, first−out inventory costing method are used?
During January, a company that uses a perpetual inventory system had beginning inventory, purchases, and sales...
During January, a company that uses a perpetual inventory system had beginning inventory, purchases, and sales as follows : Units Cost per unit Begin Inventory 100 12 Jan 5 Sale 50 10 Purchase 70 16 15 Sale 25 25 Sale 35 Required: Prepare a schedule showing cost of goods sold and ending inventory using weighted average. Prepare a schedule showing cost of goods sold and ending inventory using First In First Out. Compute gross profit under for a and b....
1.Jackson Manufacturing Company had a beginning inventory of $30,000. During the year, the company recorded inventory...
1.Jackson Manufacturing Company had a beginning inventory of $30,000. During the year, the company recorded inventory purchases of $90,000 and cost of goods sold of $100,000. The ending inventory must equal: a.$54,000. b.$52,000. c.$20,000. d.$50,000. 2.Assuming the perpetual inventory system is used, which of the following statements about the multistep income statement is correct? a.Contra-revenue accounts increase Other Expenses. b.Sales discounts affect the calculation of Gross Profit. c.Sales discounts are a Selling, General, and Administrative Expense. d.Contra-accounts affect the Cost...
Oriole Company reported the following year-end information: Beginning work in process inventory $1080000 Beginning raw materials...
Oriole Company reported the following year-end information: Beginning work in process inventory $1080000 Beginning raw materials inventory 300000 Ending work in process inventory 900000 Ending raw materials inventory 480000 Raw materials purchased 910000 Direct labor 820000 Manufacturing overhead 670000 Oriole Company's cost of goods manufactured for the year is $2220000. $2040000. $2400000. $2580000.
Ranns Supply uses a perpetual inventory system. On January 1, its inventory account had a beginning...
Ranns Supply uses a perpetual inventory system. On January 1, its inventory account had a beginning balance of $6,600,000. Ranns engaged in the following transactions during the year. Purchased merchandise inventory for $9,500,000. Generated net sales of $26,000,000. Recorded inventory shrinkage of $10,000 after taking a physical inventory at year-end. Reported gross profit for the year of $18,000,000 in its income statement. a. At what amount was Cost of Goods Sold reported in the company's year-end income statement? b. At...
a. Jill’s Dress Shop had a beginning balance in its inventory account of $40,500. During the...
a. Jill’s Dress Shop had a beginning balance in its inventory account of $40,500. During the accounting period, Jill’s purchased $76,500 of inventory, returned $5,100 of inventory, and obtained $760 of purchases discounts. Jill’s incurred $1,020 of transportation-in cost and $610 of transportation-out cost. Salaries of sales personnel amounted to $31,500. Administrative expenses amounted to $36,100. Cost of goods sold amounted to $83,300. What is the costs of goods available for sale and ending inventory? b. Ken’s Bait Shop had...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT