To apply the gross margin method, the rate of gross margin on sales is multiplied by...
To apply the gross margin method, the rate of gross margin on sales is multiplied by __________ __________ to arrive at gross margin. The gross margin is then subtracted from net sales to arrive at __________ __________ __________ __________ __________. This figure is then subtracted from __________ __________ __________ __________ __________ __________ to arrive at ending inventory.
Homework Answers
ANSWER:
To apply the gross margin method, the rate of gross margin on sales is multiplied by net sales to arrive at gross margin. The gross margin is then subtracted from net sales to arrive at cost of goods sold. This figure is then subtracted from “beginning inventory + purchases” to arrive at ending inventory.
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To apply the gross margin method, the rate of gross margin on
sales is multiplied by...
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