Estimating with Gross Profit - Ac 210, University of Alabama

in Chapter 7 (Video 4 of 4)

7 minutes

The Gross Profit Method is a way to estimate what our Cost of Goods Sold is, without having to do a physical inventory count.

This Video Mentioned Some Formulas

Profit Margin = Net Income / Sales Revenue

Sales

– COGS

Gross Profit

Gross Profit Margin = Gross Profit / Sales Revenue

Gross Profit Ratio is the same as Gross Profit Margin

Beginning Inventory

+ Net Purchases

– COGS

Ending Inventory

1	Specific Identification	2:17
2	Weighted Average	4:21
3	FIFO and LIFO	20:17
4	Estimating with Gross Profit You are here.	7:23

	Click Here to View All Chapter 7 Problems at Once	View
1	Loss On Inventory	Easy
2	Inventory Costing	Moderate