Use the following selected information from Whitman Corp.

-To determine the Year 2 and Year 1 trend percentages for cost of goods sold using Year 1 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 64.6% for Year 1.

Question

Use the following selected information from Whitman Corp.

-To determine the Year 2 and Year 1 trend percentages for cost of goods sold using Year 1 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 64.6% for Year 1.

Quizplus · Accepted Answer

To calculate the Year 2 trend percentage for cost of goods sold using Year 1 as the base, we use the following formula:
Year 2 cost of goods sold / Year 1 cost of goods sold x 100% = Year 2 trend percentage
Plugging in the numbers from the given information, we get:
$1910 / $1630 x 100% = 117.2%
Therefore, the Year 2 trend percentage for cost of goods sold using Year 1 as the base is 117.2%.
To calculate the Year 1 trend percentage for cost of goods sold using Year 1 as the base (which should always be 100%), we can simply use the given information:
Year 1 cost of goods sold / Year 1 cost of goods sold x 100% = 100%
Therefore, the Year 1 trend percentage for cost of goods sold using Year 1 as the base is 100%. 
Comparing the answer choices with these calculations, we can see that the best choice is D, which matches both of our calculated trend percentages.

Use the Following Selected Information from Whitman Corp