Reply to:
Long-vestor Wednesday, 04/23/14 04:03:50 PM
Re: HomersDepot post# 13062
Post # of 13088
. Sales Revenue IS the total amount received. $2.75
These include three types of inventory:
accounts—raw materials $2.00 lumber
work-in-process .50 paint
finished goods $2.50
CGS:
Beg fin. goods inv. $0.00
+Cost of Goods Manufactured $2.50
=Goods Available $2.50
- ending finished goods inv $0.00
=cost of goods sold $0.00 $2.50
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Gross Margin $.025
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".. if he bought a 2x4 for 2 bucks, and painted it, and resold for 2.75, he will claim the whole 2.75 as sales income.. while reality is,, the sale was 75 cents. minus labor, rent, storage, transportation, etc. and paint. inflating the "Income" by three time reality. lucky if he actually made 5 cents , seriously!
