Concept introduction:
Cost of Goods Available for sale = Beginning inventory + Cost of Goods
Cost of Goods sold:
The Cost of goods sold is the difference of Cost of goods Available for sale and the Ending finished goods inventory. The formula to calculate the Cost of goods sold is as follows:
Cost of Goods sold = Cost of goods available for sale − Ending finished goods inventory
Or
Cost of Goods sold = Beginning inventory + Purchased − Ending inventory
Requirement 1:
To calculate:
The Cost of Goods sold for the year 2014.
Concept introduction:
Cost of Goods Available for sale = Beginning inventory + Cost of Goods manufactured
Cost of Goods sold:
The Cost of goods sold is the difference of Cost of goods Available for sale and the Ending finished goods inventory. The formula to calculate the Cost of goods sold is as follows:
Cost of Goods sold = Cost of goods available for sale − Ending finished goods inventory
Or
Cost of Goods sold = Beginning inventory + Purchased − Ending inventory
Requirement 2:
To calculate:
The Gross Margin for the year 2014.
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Chapter 6 Solutions
Cornerstones of Financial Accounting
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