In: Accounting
On June 1, Haimes Company spent $200,000 to purchase 250,000 coffee mugs to sell at its retail store. During the year, Haimes Company recorded the following sales of coffee mugs: Month Mugs solds Selling price per mug June 16,000 $2.00 July 35,000 $2.50 August 2,000 $3.00 September 31,000 $2.00 October 46,000 $3.00 November 47,000 $4.00 December 40,000 $3.50 Calculate the gross profit earned by Haimes Company for the months August through November.
August | September | October | November | |
Mugs Sold | 2000 | 31000 | 46000 | 47000 |
Selling Price per mug | $ 3.00 | $ 2.00 | $ 3.00 | $ 4.00 |
Sales | $ 6,000.00 | $ 62,000.00 | $ 1,38,000.00 | $ 1,88,000.00 |
Less: Cost of goods sold (Purchase price per mug * Mugs sold ) | $ 1,600.00 | $ 24,800.00 | $ 36,800.00 | $ 37,600.00 |
Gross Profit | $ 4,400.00 | $ 37,200.00 | $1,01,200.00 | $ 1,50,400.00 |
Purchase price per mug = $200,000/250,000 = $0.80 per mug |