Use the following selected information from Whitman Corp.

-To determine the Year 1 and Year 2 common size percentages for cost of goods sold using Net sales as the base.
A)36.4% for year 2 and 41.1% for year 1.
B)55.0% for year 2 and 56.0% for year 1.
C)119.4% for year 2 and 100.0% for year 1.
D)117.2% for year 2 and 100.0% for year 1.
E)65.1% for year 2 and 56.0% for year 1.

Question

Use the following selected information from Whitman Corp.

-To determine the Year 1 and Year 2 common size percentages for cost of goods sold using Net sales as the base. 
A)36.4% for year 2 and 41.1% for year 1. 
B)55.0% for year 2 and 56.0% for year 1. 
C)119.4% for year 2 and 100.0% for year 1. 
D)117.2% for year 2 and 100.0% for year 1. 
E)65.1% for year 2 and 56.0% for year 1.

Quizplus · Accepted Answer

The common size percentage for cost of goods sold is calculated by dividing the cost of goods sold by net sales for each year. The percentages provided in option B are the correct calculations based on the given data.

Use the Following Selected Information from Whitman Corp