Bingimton Company provided the following information for last month.There were no beginning and ending inventories.
$\begin{array}{lr}
\text { Production in units } & 1,000 \
\text { Direct materials cost } & \$ 3,000 \
\text { Direct labour cost } & \$ 4,000 \
\text { Overhead cost } & \$ 7,600 \
\text { Sales commission per unit sold } & \$ 2 \
\text { Price per unit sold } & \$ 24 \
\text { Fixed selling and admini strative expense } & \$ 5,000
\end{array}$
-Refer to the Figure.What was the gross profit for Bingimton Company last month?

Question

Bingimton Company provided the following information for last month.There were no beginning and ending inventories.
 $\begin{array}{lr}
\text { Production in units } & 1,000 \
\text { Direct materials cost } & \$ 3,000 \
\text { Direct labour cost } & \$ 4,000 \
\text { Overhead cost } & \$ 7,600 \
\text { Sales commission per unit sold } & \$ 2 \
\text { Price per unit sold } & \$ 24 \
\text { Fixed selling and admini strative expense } & \$ 5,000
\end{array}$
-Refer to the Figure.What was the gross profit for Bingimton Company last month?

Quizplus · Accepted Answer

Gross profit is calculated as total sales minus the cost of goods sold (COGS). Total sales = 1,000 units * $24/unit = $24,000. COGS = Direct materials + Direct labor + Overhead = $3,000 + $4,000 + $7,600 = $14,600. Gross profit = $24,000 - $14,600 = $9,400.

Bingimton Company Provided the Following Information for Last Month -Refer to the Figure