Answer:
Gross profit for the company is = $200000
Explanation:
<u>Gross Profit is Calculated as </u>
Sales - Cost of sales
In case of a Manufacturing Company Cost of Sales are Cost of Finished Goods Manufactured
<em>Sales = $ 1000000 (given)</em>
<em>Cost of Manufactured Goods : see calculation</em>
<u>Cost of Finished Goods Manufactured is Calculated as</u>
=Opening Stock of Finished Goods + Cost of Finished Goods Manufactured for that Period - Closing Stock of Finished Goods
=$0+$800000-$0
=$800000
Therefore gross profit for the company is = $200000 (<em>$ 1000000 - </em>$800000)
ITEMS DISREGARDED
Marketing and administrative expenses $ 250000 ; This is a Periodic Cost
Indirect manufacturing costs $500,000 : Already Accounted for in Cost of Manufactured Goods
Net purchases of raw materials $600,000 : Already Accounted for in Cost of Manufactured Goods]