Question

Using the information below, calculate gross profit for the period. Sales revenues for the period $ 1,254,000 Operating expenses for the period 234,000 Finished Goods Inventory, January 1 35,500 Finished Goods Inventory, December 31 40,500 Cost of goods manufactured for the period 515,000

Answer 1

Answer:

$744,000

Explanation:

The computation of the gross profit is shown below:

But before that determine the cost of goods sold which is

Cost of goods sold is

= Opening finished goods balance + cost of goods manufactured - ending finished goods balance

= $35,500 + $515,000 - $40,500

= $510,000

now the gross profit is

= Sales - cost of goods sold

= $1,254,000 - $510,000

= $744,000