Answer:
$600,000
Explanation:
Sales = $ 1,000,000
Net purchases of raw materials = 600,000
Cost of goods manufactured = 800,000
Marketing and administrative expenses = 250,000
Indirect manufacturing costs = 500,000
Beginning inventory Ending inventory
Work in process = $500,000 $400,000
Finished goods = $100,000 $500,000
Cost of goods sold:
= Beginning finished goods inventory + Cost of goods manufactured - Ending finished goods inventory
= $100,000 + $800,000 - $500,000
= $400,000
Gross profit = Sales - Cost of goods sold
= $ 1,000,000 - $400,000
= $600,000
