Question

​Belstone, Inc. is a merchandiser of stone ornaments. It sold​ 15,000 units during the year. The company has provided the following​ information: Sales Revenue $ 510 comma 000 Purchases​ (excluding Freight​ In) 310 comma 500 Selling and Administrative Expenses 36 comma 000 Freight In 15 comma 900 Beginning Merchandise Inventory 42 comma 500 Ending Merchandise Inventory 59 comma 000 How much is the gross profit for the​ year?

Answer 1

Answer: $200,100

Explanation:

Given that,

Units sold = 15,000

Sales Revenue = $510,000

Purchases​ (excluding Freight​ In) = $310,500

Selling and Administrative Expenses = $36,000

Freight In = $15,900

Beginning Merchandise Inventory = $42,500

Ending Merchandise Inventory = $59,000

Cost of goods sold = Beginning Merchandise Inventory + Purchases​ + Freight In - Ending Merchandise Inventory

                                = $42,500 + $310,500 + $15,900 - $59,000

                                = $309,900

Gross Profit = Sales Revenue - Cost of goods sold

                    = $510,000 - $309,900

                    = $200,100