Gross Profit ??? Pls help me to explain
The following question is taken from schweser:
Units Unit Price
Beginning Inventory 709 $2.00
Purchases 556 $6.00
Sales 959 $13.00
SGA Expenses $2,649 per annum
What is gross profit using the weighted average method?
A) $6,213.98.
B) $5,676.00.
C) $6,027.56.
Answer from schweser:
weighted average cost per unit = (709 units)($2/unit) + (556 units)($6/unit) = $4,754 / 1,265units = $3.7581
weighted average COGS = ($3.7581)(959 units) = $3,604.02
Sales = (959 units)($13/unit) = $12,467
Gross profit = Sales − COGS − Expenses = 12,467 − 3,604.02 − 2,649 = $6,213.98
My question is why gross profit = Sales - COGS - Expenses, i thinks it should be: Gross profit = Sales - COGS
Any idea? |
发表于 2011-7-21 20:14
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