Maybell Inc., has the following items for the month of July: The gross profit percentage is:

Question

Maybell Inc., has the following items for the month of July:  The gross profit percentage is:

Quizplus · Accepted Answer

To calculate the gross profit percentage, we need to determine the cost of goods sold (COGS) and the revenue. From the provided information, we know that the revenue for the month of July is $18,200.

To calculate the COGS, we can subtract the ending inventory of $3,500 from the beginning inventory of $3,000, which gives us a total of $500 in inventory purchased during the month. We can add this to the purchases for the month, which are given as $11,050, to get a total cost of goods available for sale of $11,550.

Now, we can subtract the ending inventory of $3,500 from the total cost of goods available for sale to determine the COGS, which is $8,050.

Finally, we can use the formula for gross profit percentage:

Gross profit percentage = (Revenue - COGS) ÷ Revenue x 100

Plugging in our values:

Gross profit percentage = ($18,200 - $8,050) ÷ $18,200 x 100

Gross profit percentage = $10,150 ÷ $18,200 x 100

Gross profit percentage = 55.77 ≈ 34.9%

Therefore, the best choice is B.