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23 May, 06:23

Using the information below, calculate gross profit for the period:

Beginning Raw Materials Inventory$28,500

Ending Raw Materials Inventory 33,500

Beginning Work in Process Inventory 62,000

Ending Work in Process Inventory 71,000

Beginning Finished Goods Inventory 87,000

Ending Finished Goods Inventory 74,000

Cost of Goods Sold for the period 575,000

Sales Revenues for the period 1,324,000

Operating Expenses for the period 267,000

a. $749,000.

b. $482,000.

c. $1,057,000.

d. $126,000.

e. $762,000.

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Answers (1)
  1. 23 May, 09:17
    0
    a. $749,000.

    Explanation:

    The computation of the gross profit is shown below:

    Gross profit = Sales Revenues for the period - Cost of Goods Sold for the period

    = $1,324,000 - $575,000

    = $749,000

    It is shown in the income statement

    We simply deduct the cost of goods sold from the sales revenue so that the gross profit can come

    All other information which is given is not relevant. Hence, ignored it
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