The gross margin method requires all but which of the following elements of information?
A)Total sales for the present period.
B)The ending inventory for the present period.
C)Amount of purchases during the present period.
D)The beginning inventory for the present period.

Question

Quizplus · Accepted Answer

The gross margin method requires the total sales for the present period (A), the amount of purchases during the present period (C), and the beginning inventory for the present period (D) in order to calculate the cost of goods sold. The ending inventory (B) is then used to calculate the gross margin. Therefore, all options are required except for B.

The Gross Margin Method Requires All but Which of the Following