a.
Gross profit = 43% on sales
= 2,410,000 x 43%
= $1,036,300
Cost of goods sold = Sales - Gross profit
= 2,410,000 - 1,036,300
= $1,373,700
Ending inventory = Total goods available for sale - Cost of goods sold
= 2,093,300 - 1,373,700
= $719,600
b.
Gross profit = 60% of cost
Let the cost of goods sold be $K
Gross profit = K x 60%
= $0.6K
Cost of goods sold = Sales - Gross profit
K = 2,410,000 - 0.6K
1.6K = 2,410,000
K = 2,410,000/1.6
K = $1,506,250
Hence, cost of goods sold = $1,506,250
Ending inventory = Total goods available for sale - Cost of goods sold
= 2,093,300 - 1,506,250
= $587,050
c.
Gross profit = 33% on sales
= 2,410,000 x 33%
= $795,300
Cost of goods sold = Sales - Gross profit
= 2,410,000 - 795,300
= $1,614,700
Ending inventory = Total goods available for sale - Cost of goods sold
= 2,093,300 - 1,614,700
= $478,600
d.
Gross profit = 25% of cost
Let the cost of goods sold be $K
Gross profit = K x 25%
= $0.25K
Cost of goods sold = Sales - Gross profit
K = 2,410,000 - 0.25K
1.25 = 2,410,000
K = 2,410,000/1.25
K = $1,928,000
Hence, cost of goods sold = $1,928,000
Ending inventory = Total goods available for sale - Cost of goods sold
= 2,093,300 - 1,928,000
= $165,300
Ending inventory | ||
a | Gross profit = 43% on sales | $719,600 |
b | Gross profit = 60% on cost | $587,050 |
c | Gross profit = 33% on sales | $478,600 |
d | Gross profit = 25% of cost | $165,300 |
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