Assume Beta Company uses the perpetual inventory method and engaged in the following...
Question:
Assume Beta Company uses the perpetual inventory method and engaged in the following transactions:
1) Purchased $12,000 of merchandise on account under terms 3/10, n/30.
2) Returned $1,200 (list price) of merchandise to the supplier before payment was made.
3) Paid the account payable within the discount period.
4) Sold the merchandise for $15,600 cash.
The amount of gross margin from the four transactions is:
a. $5,160.
b. $3,276.
c. $5,124.
d. $3,600.
Gross margin:
The net sales minus cost of goods sold are defined as gross margin or gross profit. The cost of goods sold is amount of direct material, direct labor and manufacturing overhead incurred on production of the goods.
Answer and Explanation: 1
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View this answerFirst calculate the cost of net cost of purchase
- the gross purchase is $12,000
- the purchase return is $1,200 before payment
- The net purchase is...
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