If sales = $455,000, purchases = $225,000, beginning inventory = $150,000 and ending inventory = $118,000, gross profit is:$198,000$230,000$75,000$257,000
Question
Solution 1
To calculate the gross profit, we first need to calculate the cost of goods sold (COGS). The formula for COGS is: beginning inventory + purchases - ending inventory.
Here's the calculation:
COGS = $150,000 (beginning inventory) + $225,000 (purchases) - $118,000 (ending inventory) = $257,000
Then, Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solv
Similar Questions
If sales = $455,000, purchases = $225,000, beginning inventory = $150,000 and ending inventory = $118,000, gross profit is:$198,000$230,000$75,000$257,000
Materials to be used in production + Estimated ending materials inventory – Estimated beginning materials inventory = . (Enter only one word per blank.)
If sales revenue is $600,000 and cost of sales is $450,000, the gross profit margin is:33%25%67%75%
Beginning inventory plus net purchases is:Multiple ChoiceCost of goods sold.Merchandise available for sale.Ending inventory.Sales.Shown on the balance sheet.
What factors affect a business’s gross profit ratio, i.e. what can cause the gross profit ratio to increase and what can cause it to decrease?