Question

Wright & Boyle Inc. had the following income statement for the month of May: Sales revenue $470,800.00 Cost of goods sold 217,766.40 Gross margin $ 253,033.60 Less: $86,199.20 Selling expenses Administrative expenses 74,942.80 Operating income $91,891.60 What was the cost of goods sold percent? (Note: Round answer to two decimal places.) a. 19.45% b. 100.51% C. 52.56% d. 46.25%

Answer 1

Answer:

Option (d) is correct.

Explanation:

Given that,

Sales revenue = $470,800.00

Cost of goods sold = $217,766.40

Selling expenses = $86,199.20  

Administrative expenses = $74,942.80

Cost of Goods sold (%):

= (Cost of Goods Sold ÷ Sales Revenue)  × 100

= (217,766.40 ÷ 470,800.00) × 100

= 46.25%

Therefore, the cost of goods sold percent is 46.25.