Question

With beginning inventory costs and 9000, ending inventory costs of 7000, net sales of 51,000 and cost of goods sold of 46,000

Answer 1

The Gross Profit is calculated by subtracting the Cost of Goods Sold from the Net Sales, resulting in a Gross Profit of $5,000 for the student's scenario.

Step-by-step explanation:

The student's question pertains to the calculation of Gross Profit and the understanding of inventory costs and sales in business accounting. To calculate Gross Profit, we subtract the Cost of Goods Sold (COGS) from the Net Sales. You gave the following numbers: beginning inventory of $9,000, ending inventory of $7,000, net sales of $51,000, and COGS of $46,000. The formula to calculate COGS is: Beginning Inventory + Purchases - Ending Inventory. However, since we already have COGS, we can directly calculate Gross Profit.

Gross Profit = Net Sales - COGS

Gross Profit = $51,000 - $46,000 = $5,000

Therefore, the Gross Profit is $5,000, which is the amount of money left over from sales after accounting for the cost of sold inventory.