Estimating with Gross Profit - Acct 2301, UT Arlington

in Chapter 4 (Video 7 of 7)

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	COGS and Inventory	2:57
2	Net Sales	10:03
3	Perpetual vs Periodic	7:10
4	Transportation In	8:41
5	COGS	6:18
6	Drawbacks to Periodic	6:07
7	Estimating with Gross Profit You are here.	7:23

	Click Here to View All Chapter 4 Problems at Once	View
1	Loss On Inventory	Easy
2	The Effect of Inventory Errors	Hard