Answer:
$320,500
Step-by-step explanation:
Gross Profit is the net value of Sale and Cost of goods sold.
Cost of Goods sold is the cost of all the goods that is sold during the period excluding the cost of available Inventory.
Cost of Goods Manufactured is the cost of all the goods that is manufactured during the period including the cost of available Inventory.
First we need to calculate the under or overapplied overheads.
Overapplied overhead = Applied Overhead - Actual Overheads
Overapplied overhead = $220,500 - $200,000
Overapplied overhead = $20,500
Now calculate cost of Goods Sold,
Cost of Goods Sold = Cost of Goods Manufactured + Beg. Finished Goods Inventory - End. Finished Goods Inventory - Overapplied overheads
Therefore, we have:
Cost of good sold = $550,000 + $300,000 - $350,000 - $20,500 = $479,500
Gross profit = Sales - Cost of Goods Sold
Gross profit = $800,000 - $479,500
Gross Profit = $320,500