Answer:
Gross profit= $450,000
Explanation:
Giving the following information:
December 31:
Finished goods inventory, January 1 $ 30,000
Finished goods inventory, December 31 90,000
The cost of goods manufactured during the year amounted to $1,260,000
Annual sales were $1,650,000.
Gross profit= Sales - cost of goods sold
cost of goods sold= beginning finished inventory + cost of goods manufactured - ending finished inventory= 30000 + 1260000 - 90000= 1,200,000
Gross profit= 1650000 - 1200000 = $450,000
