The following data is available:
$$\begin{array} { | l | l | }
\hline \text { Net sales, first month } & \$ 13,000 \
\hline \text { Normal gross profit } & 45 \% \
\hline \text { Beginning inventory } & 8,000 \
\hline \text { Net purchases } & 7,000 \
\hline
\end{array}$$ Using the gross profit method, the cost of goods sold would be:

Question

The following data is available:
$$\begin{array} { | l | l | } 
\hline \text { Net sales, first month } & \$ 13,000 \
\hline \text { Normal gross profit } & 45 \% \
\hline \text { Beginning inventory } & 8,000 \
\hline \text { Net purchases } & 7,000 \
\hline
\end{array}$$ Using the gross profit method, the cost of goods sold would be:

Quizplus · Accepted Answer

The cost of goods sold is equal to the net sales minus the gross profit. The gross profit is equal to the normal gross profit percentage multiplied by the net sales. Therefore, the cost of goods sold is equal to:$13,000 - (0.45 x $13,000) = $9,350

The Following Data Is Available Using the Gross Profit Method, the Cost of Goods Sold