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First year Sales and Cost of goods sold were $6,000 and $4,300. Next year, the projected sales is more by 10%. What would be cost of goods sold?

<p> <strong><em><span>(a) $4,300</span></em></strong></p> <p><strong><em><span>(b) $4,900</span></em></strong></p> <p><strong><em><span>(c) $4,730</span></em></strong></p> <p><strong><em><span>(d) $4,400</span></em></strong></p>

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تم إضافة السؤال من قبل VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.
تاريخ النشر: 2014/12/20
Khan Sohal khan
من قبل Khan Sohal khan , Associate , State Street Syntel Services Pvt Ltd.

C is right assuming GP ratio is constant

georgei assi
من قبل georgei assi , مدير حسابات , المجموعة السورية

TheAnswer C4,730

Md. Shahrier Aswad
من قبل Md. Shahrier Aswad , Accounts Officer, Finance & Accounts Department , Center for the Rehabilitaion of the Paralysed (CRP)

assuming COGS ratio to Sales unchanged, answer is "C",   

4300*110%=4730,

Naveed Nawaz
من قبل Naveed Nawaz , Regional Accountant & Auditor , Toni&Guy (North Pakistan)

Cost to Sales Ratio (4,300/6,000) =71.67%

Projected Sales (6,000*1.10) =6,600

So,

Projected Costs (6,600*71.67%) =4,730

Ahmed kandil
من قبل Ahmed kandil , Cost Controller , Battour Holding Cpompany

Answer is C  ((4730)) 

there are2 ways for solution 

first way 

COGS percentage =4300/6000 = .7166

the next year sales is increase by10%

mean that sales is6000*1.1=6600

COGS equal =6600 * .7166 =4729.56

thus COGS equal4730

 

 second way for solution

COGS equal =  4300*1.1 =4730 

 

Amer Hamad
من قبل Amer Hamad , Financial Director , CEG International

The answer is (C)4730

Salah Othman Yousef Alshambaati
من قبل Salah Othman Yousef Alshambaati , مدير ادارة الحسابات , شركة انفال الجديدة للتجارة والمقاولات

c-4730

Mohammed Salim Allana
من قبل Mohammed Salim Allana , Compliance and Assurance Manager , United Arab Bank

Agreed with all answers. c) the growth of10% in sales as well in the cost of goods.4,730/-

LABIB KOOLI
من قبل LABIB KOOLI , Director of the Sectoral Center for Training in Hotel Technologies at Southern Hammamet , Tunisian Vocational Training Agency (ATFP)

Hopefully with no futher depreciation , the next year goods's cost is C -4,730 $

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