Refer to the following data:
Net sales, first month
$13,000
Normal gross profit as a percentage of sales
45%
Inventory, start of period
$8,000
Net purchases, first month
$7,000

Using the gross profit method of inventory estimation, the amount of normal gross profit would be

Question

Refer to the following data: ​
Net sales, first month
$13,000
Normal gross profit as a percentage of sales
45%
Inventory, start of period
$8,000
Net purchases, first month
$7,000
​
Using the gross profit method of inventory estimation, the amount of normal gross profit would be

Quizplus · Accepted Answer

The gross profit is 45% of sales, so the normal gross profit is $13,000 x 45% = $5,850.

Refer to the Following Data: ​

Refer to the Following Data: