Question

The weighted-average cost method is used by Jose, Inc. Sales are $240,000, the number of units available for sale is 100, the number of units sold during the period is 75, and the weighted-average cost of the goods available for sale is $600 each. How much is gross profit for the company?

Answer 1

The correct answer is $195,000.

Step-by-step explanation:

According to the scenario, the given data are as follows:

Sales = $240,000

Units available = 100

Units sold = 75

Weighted-average cost of the goods = $600

So, we can calculate the gross profit for the company by using following formula:

Gross profit = Sales - cost of goods sold

By putting the value, we get

Gross profit = $240,000 - ( $600 × 75)

= $240,000 - $45,000

= $195,000