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.The gross margin method is used when ending inventory for the present period is not available. It does require the beginning inventory balance and sales and purchases for the present period.

Question

Quizplus · Accepted Answer

The gross margin method requires total sales for the present period, amount of purchases during the present period, and the beginning inventory for the present period. Ending inventory for the present period is not necessary as it can be calculated using the gross profit percentage.

The Gross Margin Method Requires All but Which of the Following