Question

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

Answer 1

Gross profit= $450,000

Step-by-step 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