GROSS PROFIT METHOD

--

--
O

-- -
·
-

O
 1) Sales : 43
,
000
,
000

(3
# ,
000 , 000)
Net Sales : 40 , 000 000
,

* CostRao : 100/125(100% + 25 % GPR based on

Cost]
LOGS : 32 000 000
, ,

Net purchases : Inv.

Consigned
Beg Selling
:
. Inventory
5, 000
, 000
175 % > -

1, 000 000
,
-

Price

is one
1000) CORS
1 Apply concept
000- (800
Purchases : 34 , 000 , 000 14 : 125 % -) of
, -

Freight In : 2 , 000 , 000

PR/A I

&3 ,
300 ,
0003
PD : 500 ,000 Physical Inv
(1 , .

-
THAS 6, 000, 000

oooooe
: -
D Estimate

1000000)- ColsofInvConsign
COGS : 000 e

End Inv .

oooloooff
Physical content

Inventory Shortage
-

2) Ave. GPR based on sales

Gross : 2, 250 , 000

profit

NetSale :
oooo
- e
<

·p

cost Ratio : 75 % (100 % -

25 % )

Alternative Solution

Gross
profit :2 , 250, 000
-
LO GS
750o
.:
I

GPR based on cost :

↳
Cost ratio : 75 % (100 : (100 % + 33 % )

Beg .
(nv .. 600 , 000

Net Purchases . 300 , 000

TGAS : 4 , 900 , 000

lless)Cons
: 5, 600 , 000 75 %

200000
-
x cost Rati e

Cless) Undamaged goods. (225, 000)

3
>
-

300K * 75 % Ito na
lang o
Damaged goods
NRV
! (25 , 000) nativa sa Inv .

Fire Loss :
#50
-
000 ,
-
D amount na nawala
 -
-

- -

↳ Assumed as

GPR based
· on

Sales

- -
-
-

>
- -
-

X
-
m m -
-
-

O
 3)
Accounts Receivable
- -

I
Beg 700
, 008 8, 400 , 000 Collections

Sales (Sqepeze) 8, 800 , 000

I , 100 , 000 End .

Sales (Cash) : 900 , 000 Beg. Inventory . 1, 500

, 000

(A/R) :

Parrassessoror
Add

00000
sales

Net Sales :

Cost Ratio X 60 % (100 % -

40 % ) Less .
COGS
--

COGS 5 820
, ,
000 End Inv .
.

Singsage a problemrae sure was

2) Raw materials Beg .: 1 , 700 000

, Sales : 20 , 000
,
000

Purchases :
(100 % e
70%
4, 000 ,
000
Cost Ratio : >
-
-
30 %
-

Total raw materials available for use : 5, 700 , 000 Cost of Goods Sold ; - LD GPR based on

end sales
Less Raw, materials :
(2 ,
000 ,
0009
-
Raw materials issued to production : 3 700 , 000 -

-
,

4, 300 ,
Work
I n process Beg.: 000

Tofal
Direct Labor Cost : 5, 000 ,
000
- manufacturing cost 3, 700, 000

Factory Overhead :
,
000 000
, - 5
,
000 000
,

Total goods process : 3, 000 , 000

In
into
put

Work

Cost of goods manufactured

In process end :

:
o ,
-
12
,
500 000 -
#200
000 ,

Finished goods Begi

Total goods available forsale
: ,00o
000
Less Finished goods End :
(4 , 500 , 000)
Cost of
goods manufactured
sold : # ,
000
,
000
-

Sales on Account : 7 , 340, 000

5)
Salesi
Rash
-
/

-oooooo Too : %
-
-
100
toi GPRbasedon sis

Good
Sales on Account :

Salesi
Rash T
-
/
100 %: 100 % +20 % GPR based
osis
cost Goods Sold
of for August
-

Beg inv (30 % * 6 , 800

, 000) =
2 040 ,
,
000

-Karannses artooo
TGAS

Li (Endlar of uly =
Bey of August)
 7
O
Tu 100 %A
>
-

7 360, 000
O ,

80r , 000
-

8 160 , 000
,
= Net sales 120 %
I roas
O ? 10

To
e 8, 160 , 000
8. 640 , 000

O - 120 %
10 %
S

I
--
-- 7 200, 000
,

4 , 800 , 000
-

COGS

Beg INNI
2 ,
040 008
,
purchases: 4 , 920 , 000 squeeze
-
TGAS 8 940 , 000
,

↳,
, ( 800 008

I
2 140 000
El ,
,