Proctor & Gamble Company
Autor: thadalger • November 28, 2011 • Essay • 1,489 Words (6 Pages) • 1,432 Views
AC 550
Project 2
Part 1 Gross Profit Method
Gross Profit of Sales
Beginning Inventory (at cost) $100,000
Net Purchases (at cost) 400,000
Goods available at cost 500,000
Sales $400,000
Less: Gross profit (25% of 400,000) 100,000
Sales (at cost) 300,000
Approximate inventory at cost $200,000
Gross Profit of Cost of Goods Sold
Beginning Inventory (at cost) $100,000
Net Purchases (at cost) 400,000
Goods available at cost 500,000
Sales $400,000
Less: Gross profit (33.3% of 400,000) 133,000
Sales (at cost) 267,000
Approximate inventory at cost $233,000
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