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

Question

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

Quizplus · Accepted Answer

Gross profit = Sales revenue - Cost of goods soldSales revenue = Price per unit sold * Production in units = $24 * 1,000 = $24,000Cost of goods sold = Direct materials cost + Direct labour cost + Manufacturing overhead cost = $3,000 + $4,000 + $7,600 = $14,600Gross profit = $24,000 - $14,600 = $9,400

Bingimton Company Bingimton Company Provided the Following Information for Last

Bingimton Company
Bingimton Company Provided the Following Information for Last