Answered: If ABC Corp sold 4,000 units at $50…

If ABC Corp sold 4,000 units at $50 each, and cost of goods sold was $50,000, what is ABC Corp's gross profit percentage for the period? $150,000 25% 133% 75%

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 2MC: The following information is available for Cooke Company for the current year: The gross margin is...

See similar textbooks

Related questions

Q: Cullumber Inc. had the following transactions pertaining to investments in common stock. Jan. 1…

A: The journal entries are prepared to record the transactions on regular basis. The dividend received…

Q: Case 2: On January, 1 2021, Silver Company entered into a lease for floor space with the following…

A: To calculate the carrying amount of the right of use asset as of December 31, 2024, we need to…

Q: Using the following accounts and balances, prepare the "Stockholder's Equity" section of the balance…

A: Stockholder's equity section is a part of balance sheet consist of Capital contributed by…

Q: Helix Company is approached by a new customer to provide 1,900 units of its product at a special…

A: Special Order Decision Analysis Is a Method Businesses Use To Evaluate The Net Income Of Accepting…

Q: ny forecasts that total overhead for the current year will be $11,649,000 with 153,000 total machine…

A: Answer : Predetermine overhead rate Predetermine overhead rate = Estimated overhead / Total…

Q: ! Required information [The following information applies to the questions displayed below.] These…

A: Variable costs are those costs which changes with changes in volume. Fixed costs are those costs…

Q: For the year ended December 31, 2021, Finco Incorporated reported earnings per share of $2.88.…

A: The measure of a company's profitability that is given to each existing share of common stock is…

Q: ement of brewery Ipana oy is planning new strategies to increase profit. An alternative tactic for…

A: Contribution ratio show how much cash have been added by the product after considering the variable…

Q: Pharoah Inc. had a bad year in 2021. For the first time in its history, it operated at a loss. The…

A: Break even refers to the situation when there is no loss or no profit or at this point the total…

Q: Recording Entries for Interest-Bearing and Noninterest-Bearing Notes Anne Taylor Company borrowed…

A: “Since you have posted a question with multiple sub-parts, we will provide the solution only to the…

Q: A new gizmo costs $9050. Maintenance costs $6907 per year and labour savings are $1900 per year.…

A: The payback period is a financial metric that is commonly used to determine how long it will take…

Q: Job 327 was recently completed. The following data have been recorded on its job cost sheet:…

A: The total cost of job comprises direct materials, direct labor and overhead applied. The overhead is…

Q: On January 1, 2022, Larkspur, Inc. had these stockholders' equity balances. Common Stock, $1 par…

A: Stockholder's Equity - Stockholder's Equity statement is a part of financial statement. This…

Q: Skint Limited has an opening bank balance of €1610 on 1 May. During May, the company makes sales of…

A: Since Skint limited is giving one month credit to all the customers, its total sale is credit sale…

Q: +Book 4D HM Ask Prim References Exercise 2-24 (Algo) Computing net income LO P1 A company had the…

A: STATEMENT OF SHAREHOLDERS EQUITY Statement of Shareholders Equity is also Known as Changes in…

Q: Microsoft Corporation develops, produces, and markets a wide range of computer software including…

A: Particulars Amount ($ in million) A) Closing Allowance for Doubtful Debt 410 B) Add : Bad…

Q: c)Calculate the net interest and the return on plan assets for 2018 d) Prepare a pension worksheet…

A: Under a defined benefit pension plan, the retirement benefits are fixed (worked out by pension…

Q: Cala Manufacturing purchases land for $337,000 as part of its plans to build a new plant. The…

A: Journal entry is the primary reporting of transactions in the books of accounts. These are further…

Q: Cheesesteak's Sandwich Shop had the following long-term asset balances as of January 1, 2024: Cost…

A: Answer:- Depreciation:- An asset loses value over time as a result of use, damage etc. Depreciation…

Q: Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of…

A: Bad debt expense :— It is the amount of receivable that are no longer collectible from customer.…

Q: Matrix Inc. calculates cost for an equivalent unit of production using the FIFO method. Data for…

A: Equivalent units of production arises in case of process costing . In most cases,not all units are…

Q: Wildhorse Company's record of transactions concerning part X for the month of April was as follows.…

A: Perpetual inventory system is the one wherein the inventory records are prepared on day to day basis…

Q: Gizmo Whiz manufactures premium food processors. The following are some manufacturing overhead (MOH)…

A: Budgeted number of machine-hours planned=Budgeted units×Planned allocation rate Budgeted fixed…

Q: Murphy Self Storage purchased land, paying $160,000 cash as a down payment and signing a $185,000…

A: Non-current assets are assets which are held by the company for more than a year. These cannot be…

Q: Northwood Company manufactures basketballs. The company has a ball that sells for $25. At present,…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: BALANCE SHEET AT END OF YEAR (Figures in $ millions) Assets 2021…

A: Fixed assets are those assets which are acquired by the company for the long term use in business…

Q: Swifty and Miller Manufacturing is trying to determine the equivalent units for conversion costs…

A: The Numerical has covered the concept of Equivalents Units for Conversion Cost. In the next step, we…

Q: Rovniak Reeds, a manufacturer of saxophone, oboe, and clarinet reeds, has projected sales to be…

A: Sales budget is the statement which is prepared by the entity to forecast the sales and revenue from…

Q: CC7-1 (Algo) Accounting for Changing Inventory Costs [LO 7-3, LO 7-5] In October, Nicole eliminated…

A: The inventory can be valued using various methods such as FIFO, LIFO, and average methods. The FIFO…

Q: Describe the direct method and indirect method of preparing the cash flow statement, and discuss the…

A: The cash flow statement is a financial statement that shows the inflows and outflows of cash and…

Q: Holmes Company has already spent $66,000 to harvest peanuts. Those peanuts can be sold as is for…

A: If there is an incremental income, then the company should process further. If there is incremental…

Q: Required information [The following information applies to the questions displayed below.) NewTech…

A: The depreciation expense is charged on fixed assets as the reduction in the value of the fixed…

Q: Balance Sheet June 30th, Year 5 Assets Cash 10,000 Accounts receivables 34,000 Inventory Prepaid…

A: As per bartleby guidelines if a student asked multiple sub-questions in the primary question then we…

Q: Break-even sales and sales mix for a service company Zero Turbulence Airline provides air…

A: Note : In this numerical has covered the concept of Break even for multiple product . It is also…

Q: Assume Karo Products, Inc., purchased conveyor-belt machinery. Requirement 1. Classify each of the…

A: Capital expenditure is the money spent by a business to buy or upgrade fixed, physical, or…

Q: The trial balance of Pacilio Security Services Inc. as of January 1, 2013, had the following normal…

A: Journal Entries - Journal Entries are the recording of transactions of the organization. It is…

Q: A company shows the following balances: Sales Revenue Cost of Goods Sold Sales Returns and…

A: Notes : Gross profit is the difference between net sales revenue and cost of goods sold. Gross…

Q: Here are comparative balance sheets for Crane Company. Prepare a statement of cash flows-indirect…

A: In cash flow from operating activities under Indirect Method - The profit is considered & all…

Q: Whirly Corporation's contribution format income statement for the most recent month is shown below:…

A: Net operating income is the amount of income earned by the entity after deducting all the operating…

Q: Cash Accounts receivable Allowance for doubtful accounts Inventory Accounts payable Common stock…

A: Journal Entry :— It is an act of recording transaction in books of account when transaction…

Q: Please Explain Proper Step by Step and Do Not Give Solution In Image Format And Fast Answering…

A: 1.Journal entries required on 30 June 2022 in relation to the measurement of the assets of Mavin…

Q: The RealReal, Incorporated, is a public company that sells authenticated luxury goods, similar to…

Q: Note: For all scenarios, support your answers with citations from the authoritative IFRS and U.S.…

A: Provisions are liabilities of uncertain timing or amount that are recognized by companies under both…

Q: Aleutian Company produces two products: Rings and Dings. They are manufactured in two departments:…

A: Formula : Overhead rate = Estimated overhead / Estimated labor hour

Q: Radar Company sells bikes for $540 each. The company currently sells 4,400 bikes per year and could…

A: The incremental income can be calculated by the subtracting incremental variable cost and fixed cost…

Q: Heart Company incurred costs in 2022 as follows: Equipment acquired for use in various research and…

A: Research and Development (R&D) costs are those costs that a company incurs to innovate or adapt…

Q: A corporation has the following taxable income in its first 5 years of operations: Tax year Taxable…

Q: Exercise 4-3 (Algo) Recording purchases, purchases returns, and purchases allowances LO P1 Prepare…

A: Journal Entries - Journal Entries are the record of the transactions entered into by the…

Q: Question Content Area Cavy Company estimates that the factory overhead for the following year will…

A: Predetermined Overhead rate = Estimated overhead / Estimated machine hours Predetermined Overhead…

Q: Following is a statement of cash flows (indirect method) for Hartford Incorporated for the year…

A: The quantity of net revenue that remains for the company after dividend payments to stockholders are…

Question

If ABC Corp sold 4,000 units at $50 each, and cost of goods sold was
$50,000, what is ABC Corp's gross profit percentage for the period?
$150,000
25%
133%
75%

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction

VIEW

Step 2: Gross Profit Calculation

VIEW

Step 3: Gross Profit Percentage Calculation

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Johnson Corporation had beginning inventory of 20,000 at cost and 35,000 at retail. During the year, it made net purchases of 180,000 at cost and 322,000 at retail. Johnson nude sales of 300,000. Assuming a price index of 100 at the beginning of the year and 110 at the end of the year, compute Johnsons ending inventory at cost using the dollar-value LIFO retail method.
A company has pre-tax or operating income of $120,000. If the tax rate is 40%, what is the companys after-tax income? A. $300,000 B. $240,000 C. $48,000 D. $72,000
During the current year, Sokowski Manufacturing earned income of $350,000 from total sales of $5,500,000 and average capital assets of $12,000, 000. What is the sales margin?
If a company has net sales of $500,000 and cost of goods sold of $350,000, the gross profit percentage is 70%. 30%. 15%. 100%.
A company has $550,000 in net sales and $193,000 in gross profit. This means its cost of goods sold equals a. $743,000. c. $357,000. e. $(193,000). b. $550,000. d. $193,000.
A company has sales of Ghc1,000. The company sell three types of goods. Sixty percent of sales are of type A. Which is sold at a mark -up of 20%. Type B goods are sold at a margin of 30%. The cost of type B sold in the year was Ghc154 and the total gross profit for the year was Ghc184. What was the gross profit for type C?
A company has sales of Gh1,000.The company sells three types of goods . Sixty percent of sales are of types A which is sold at a mark-up of 20%. Type B goods are sold at a margin of 30%.The cost of this B sold in the year was Gh 154 and total gross profit for the year was Gh 184. What wast the cost of sales for type C?
A company has sales of $763,000 and cost of goods sold of $306,000 it's gross profit equals what? A. (457,000) B. 763,000 C. 306,000 D. 457,000 E. 1069,000
a company has sales of 763000 and cost of goods sold of 306,000 its gross profit equals (457,000) 763,000 306,000 457,000 1069,000
65. Presented below are excerpts from the income statements of Ralos Company for the years ended December 31, 2021 and 2020. 2021 2020 Inc (Dec) Net sales P2,750,000 P2,500,000 P250,000 Cost of goods sold 1,584,000 1,600,000 ( 16,000) Gross margin P1,166,000 P 900,000 P234,000 The unit cost decreased by 10% on January 1, 2021. What is the effect on sales due to change in selling price? Group of answer choices P250,000 increase P 75,000 increase P 0 P275,000 increase
Assume Juniper Natural Dyes made Net Sales Revenue of $90,000 and Cost of Goods Sold totaled $58,000. What was Juniper Natural Dyes’s gross profit percentage for this period? (Round your answer to the nearest whole percent.) a. 36% b. 3.4 times c. 64% d. 17%