P6-18 Unrealized Profit On Upstream Sales
P6-18 Unrealized Profit On Upstream Sales
20X2
Ending
Total = Re-sold + Inventory
Sales 200,000 130,000 70,000
COGS 160,000 104,000 56,000
Gross Profit 40,000 26,000 14,000
Gross Profit % 20.00%
20X3
Ending
Total = Re-sold + Inventory
Sales 175,000 70,000 105,000
COGS 140,000 56,000 84,000
Gross Profit 35,000 14,000 21,000
Gross Profit % 20.00%
20X4
Ending
Total = Re-sold + Inventory
Sales 225,000 105,000 120,000
COGS 180,000 84,000 96,000
Gross Profit 45,000 21,000 24,000
Gross Profit % 20.00%
P6-21 (continued)
Sales
Cost of Goods Sold
Inventory
The basic entry (not shown) would be adjusted by 4,000 of deferred profit
to complete the elimination process.