ACC1820 MANAGERIAL ACCOUNTING Project 1 Merchandise Account

ACC1820 -MANAGERIAL ACCOUNTING Project # 1: Merchandise Accounting Review Part 2: Gross Profit Method-10 Points Fill in the missing amounts in each of the following independent situations. Sales Gross Sales Discounts Net Sales COGS Gross Profit Company Sales Returns 8 4,000 10,000 Profit % 37% 46% Allow 7,000 4,000 34,700 23,900 93,000 Amherst Banker Cambell 120,000 Decker g 3,000| 100| 98,900| 36,800| h | r 65,400 56,800f 93,300 105,000 Company Net Sales Beginning Net Ending Inventory Purchases Inventory COGS Gross Profit | Profit% 106,000 137,000 21,000 26,000 62,000 17,000 23,000 Lawson Ethanm 54,000 24,000 62,000 29,000 Paulus 82,0008,000 29,000 O 33,000 ANSWERS a. b.

Solution

Fill in the missing amount in each of the following independent situation Company Sales Sales Return & Allowances Sales Discounts Net Sales COGS Gross Profit Gross Profit % Amherst 104000 4000 7000 93000 58300 34700 37% Banker 93300 0 4000 89300 65400 23900 27% Cambell 120000 10000 5000 105000 56800 48200 46% Decker 102000 3000 100 98900 36800 62100 63% Company Net Sales Beginning Inventory Net Purchases Ending Inventory COGS Gross Profit Gross Profit % Backer 106000 21000 62000 17000 66000 40000 38% Lawson 137000 26000 90000 23000 93000 44000 32% Ethan 91000 32000 54000 24000 62000 29000 32% Paulus 82000 8000 29000 4000 33000 49000 60% Formula= a) Sales=Sales Return & Allowances+Sales Discount+Net Sales b) COGS=Net Sales-Gross Profit d) Net Sales=COGS+Gross Profit c ) Sales-Sales Retun & allowances-Sales discount=Net Sales e) Sales-Sales Return & allowances-Net Sales=Sales Discount f) Net Sales-COGS=Gross Profit g) Sales=Sales Return & Allowances+Sales Discount+Net Sales h) Net Sales-COGS=Gross Profit q) (Gross Profit/Net Sales)*100 r) (Gross Profit/Net Sales)*100 i) Beginning Inventory+Net Purchases-Ending Inventory=COGS j) Net Sales-COGS=Gross Profit i) Net Sales-Gross Profit=COGS k) COGS+Ending Inventory-Beginning Inventory=Net Purchases m) COGS+Gross Profit=Net Sales n) COGS+Ending Inventory-Net Purchases=Beginning Inventory o) Beginning Inventory+Net Purchases-COGS=Ending Inventory p) Net Sales-COGS=Gross Profit s) (Gross Profit/Net Sales)*100 t) (Gross Profit/Net Sales)*100