Given the costs you just calculated and recognizing that the company typically sets its selling prices at $130\%$ of its product costs.

what level of sales would Jason have expected? What gross margin percentage would this generate? $($Round gross margin

percentage to $1$ decimal place, eg$.15\mathrm{.}2\%)$

Expected sales revenue $

Gross margin percentage

eTextbook and Media Schedule of COGM & COGS

I

: Beginning WIP Inventory

: BegInning FInished Goods Inventory

: Ending FInlshed Goods Inventory Vour answer is correct.

$($a$)$ Fill in the third column of the above chart by identifying whether each cost item should be initially recorded as an asset or as an

expense.

$($b$)$ Fill in the fourth column of the chart by recognizing, if each item is considered to be inventoriable $($product$)$ cost or not. Jason, the manager at Metlock's Danishes, was excited to determine the company's profit this year. It was a break$-$out year for the

company, especially after being selected to cater the World College Club Sports Athletes' Annual Meeting. The company was thrilled!

The number and variety of danishes produced for that event alone doubled the company's sales for the year. Jason knew the total

sales amount but had yet to determine the total COGS. He hoped that it would be low relative to sales. Here are the transactions and

amounts Jason found when gathering information for his COGS calculation.

Jason was sure that not all of these amounts should be included in COGS but didn't know how to correctly sort them.