Question

(g) (h) Ending work in process inventory (b) 3.480 Sales revenue 25,120 (i) Sales discounts Cost of goods manufactuired 17.590 (c) 3,450 Cost of goods available for sale 22,210 (j) Cost of goods sold (d) (k) Ending finished goods inventory 3,960 3,250 Gross profit (e) 7,450 Operating expenses 3,160 (I) Net income (f) 5,980 (b) The parts of this guestion inust be completed in order. This part wili be available when you complete the gart above. (c) The parts of thlis question must be completed in order, This part wil be available when you complete the part above.

Answer 1

Accounting profit is computed by deducting explicit costs from total revenues, which in the example provided results in $50,000. Economic profit is accounting profit less implicit costs, not given in this question.

Step-by-step explanation:

The question is related to calculating different financial metrics of a company, such as accounting profit and economic profit. One can calculate the accounting profit by subtracting the explicit costs from the total revenues. Using the data provided, the accounting profit is calculated as $1,000,000 (total revenues) minus ($600,000 spent on labor, $150,000 on capital, and $200,000 on materials), equaling an accounting profit of $50,000. The economic profit is further calculated by taking the accounting profit and subtracting the implicit costs, which is not provided in the question. For example, if the implicit cost were $30,000, the economic profit would be $20,000.