Tablets Company had the following information at December 31:Finished goods inventory, January 1 $ 30,000Finished goods inventory, December 31 90,000If the cost of goods manufactured during the year amounted to $1,260,000 and annualsales were $1,650,000, the amount of gross profit for the year is

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Business

Miracle Owen

19 July, 21:17

Tablets Company had the following information at December 31:Finished goods inventory, January 1 $ 30,000Finished goods inventory, December 31 90,000If the cost of goods manufactured during the year amounted to $1,260,000 and annualsales were $1,650,000, the amount of gross profit for the year is

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Yahir Oneill · Answer 1

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