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?a. $195,000 b. $ 60,000 c. $ 30,000 d. $ 45,000

Answer 1

Gross profit= $195,000

Step-by-step explanation:

Giving the following information:

Sales= $240,000

Number of units sold= 75

Weighted-average cost= $600 each.

To calculate the gross profit, we need to use the following formula:

Gross profit= sales - COGS

Gross profit= 240,000 - 75*600

Gross profit= $195,000