Hey Professor Farhat, I am having trouble with the terminology when it comes to finding COGS to find the "squeeze" for Ending Inventory. I keep messing up with the terminology such as "Average markup on cost", "Gross Profit on Sales", "Normal PM on Sales". For example, it gave me "Gross Profit on % of sales is 40%" and I calculated my COGS by doing sales x 40% when the correct way was sales x (1-40%). Another instance where I messed up was they gave me "Average markup on cost" and did 1-25% and the correct way was to do 1.25. Do you have any advice to improve at this? The base formula I have been using is Beg inv. + Purchases = COGAS - End Inv = COGS or if the problem gives me COGS and I need to find EI I would do Beg Inv. + Purchases = COGAS - COGS = End Inv.Thank you!
I hate this chapter... This is so boring! UGH! Learning about inventory is the most boring thing in accounting... do you agree with, Professor Farhat? 😭
Hey
the purchase discount is 17700
and COGS is 527300
Thanks
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Hey Professor Farhat, I am having trouble with the terminology when it comes to finding COGS to find the "squeeze" for Ending Inventory. I keep messing up with the terminology such as "Average markup on cost", "Gross Profit on Sales", "Normal PM on Sales". For example, it gave me "Gross Profit on % of sales is 40%" and I calculated my COGS by doing sales x 40% when the correct way was sales x (1-40%). Another instance where I messed up was they gave me "Average markup on cost" and did 1-25% and the correct way was to do 1.25. Do you have any advice to improve at this? The base formula I have been using is Beg inv. + Purchases = COGAS - End Inv = COGS or if the problem gives me COGS and I need to find EI I would do Beg Inv. + Purchases = COGAS - COGS = End Inv.Thank you!
Jalol was here as well!
Sir, so in both method always same GP?
Yes, You are very welcome! Please take a look at my website for more resources: www.farhatlectures.com
ending inventory has to be 165,00
I hate this chapter... This is so boring! UGH! Learning about inventory is the most boring thing in accounting... do you agree with, Professor Farhat? 😭