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Computing Gross Profit and Cost Percentages Given Ending Inventory Balances Harris Inc., with a December 3 1 year - end, uses a periodic inventory system.
Computing Gross Profit and Cost Percentages Given Ending Inventory Balances
Harris Inc., with a December yearend, uses a periodic inventory system. Because its physical inventory count takes place at yearend only, Harris estimates ending inventory
for its quarterly reports using the gross profit method. The following information for the first two quarters of the year is available.
Required
Compute the following percentages.
b Gross profit as a percentage of cost for the first quarter.
c Gross profit as a percentage of sales for the second quarter.
d Gross profit as a percentage of cost for the second quarter.
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