Belstone,Inc.is a merchandiser of stone ornaments.It sold 15,000 units during the year.The company has provided the following information:

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:

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