Lakeshore Manufacturing provided the following information for the month ended March 31: $$\begin{array} { | l | r| }
\hline \text { Sales Revenue } & \$ 30,000 \
\hline \text { Beginning Finished Goods Inventory } & 17,000 \
\hline \text { Ending Finished Goods Inventory } & 11,500 \
\hline \text { Cost of Goods Manufactured } & 12,600 \
\hline
\end{array}$$ Compute gross profit.

Question

Lakeshore Manufacturing provided the following information for the month ended March 31: $$\begin{array} { | l | r| } 
\hline \text { Sales Revenue } & \$ 30,000 \
\hline \text { Beginning Finished Goods Inventory } & 17,000 \
\hline \text { Ending Finished Goods Inventory } & 11,500 \
\hline \text { Cost of Goods Manufactured } & 12,600 \
\hline
\end{array}$$ Compute gross profit.

Quizplus · Accepted Answer

Gross profit is calculated as Sales Revenue minus Cost of Goods Sold (COGS). COGS is calculated as Beginning Finished Goods Inventory plus Cost of Goods Manufactured minus Ending Finished Goods Inventory. COGS = $17,000 + $12,600 - $11,500 = $18,100. Gross Profit = $30,000 - $18,100 = $11,900.

Lakeshore Manufacturing Provided the Following Information for the Month Ended