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

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
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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

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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.
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