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What is the gross margin for the sale

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Question - Silver Trading Company made a cash purchase of 1,000 units of marble paperweights at P65 per unit from its supplier in Romblon. The company agreed to shoulder the local government tax of P 500 for the transaction as well as storage costs of P750. Ownership vests on Silver Trading only upon the arrival of the goods at its warehouse in Aklan. The carrier was charging shipping costs of P1,000 to handle the delivery. Silver Trading subsequently sold 100 units at P80 each to a souvenir shop.

Required -

a. How much cost of goods sold should be recorded for the sale?

b. If Silver trading grants an allowance of P500, what is the gross margin for the sale?

Reference no: EM132788260

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