Belstone,Inc.is a merchandiser of stone ornaments.It sold 15,000 units during the year.The company has provided the following information: $\begin{array} { | l | r | }
\hline \text { Sales Revenue } & \$ 525,000 \
\hline \text { Purchases (excluding Freight In) } & 347,000 \
\hline \text { Selling and Administrative Expenses } & 36,500 \
\hline \text { Freight In } & 15,500 \
\hline \text { Beginning Merchandise Inventory } & 42,000 \
\hline \text { Ending Merchandise Inventory } & 55,500 \
\hline
\end{array}$ How much is the gross profit for the year?

Question

Belstone,Inc.is a merchandiser of stone ornaments.It sold 15,000 units during the year.The company has provided the following information: $\begin{array} { | l | r | } 
\hline \text { Sales Revenue } & \$ 525,000 \
\hline \text { Purchases (excluding Freight In) } & 347,000 \
\hline \text { Selling and Administrative Expenses } & 36,500 \
\hline \text { Freight In } & 15,500 \
\hline \text { Beginning Merchandise Inventory } & 42,000 \
\hline \text { Ending Merchandise Inventory } & 55,500 \
\hline
\end{array}$ How much is the gross profit for the year?

Quizplus · Accepted Answer

Cost of Goods Sold = Beginning Merchandise Inventory + Purchases + Freight In - Ending Merchandise Inventory = $42,000 + $347,000 + $15,500 - 55,500 = $349,000
Gross Profit = Sales Revenue - Cost of Goods Sold = $525,000 - $349,000 = $176,000

Belstone,Inc How Much Is the Gross Profit for the Year? A)

Belstone,Inc How Much Is the Gross Profit for the Year?
A)