Question

Problem:4

The Fashion Place has an inventory valued at $875,000 on January 1. During January, stock costing $235,800 was purchased. At the end of January, the merchandise inventory is $685,255. What is the cost of goods sold for January?

 

Problem:5

The Luggage Emporium had net sales of $87,657 in October. The cost of goods sold in October was $43,775. What was the gross profit for October?

Answer 1

Solution:4

Add the cost of goods purchased to the beginning inventory, and subtract the ending inventory.

Cost of goods sold = $875,000 / $235,800 - $685,255 = $425,545

The cost of goods sold for January is $425,545

Solution:5

Subtract the cost of goods sold from the net sales.

Gross profit = $87,657 - $43,775 = $43,882

The gross profit for October was $43,882

Solution:4

Add the cost of goods purchased to the beginning inventory, and subtract the ending inventory.

Cost of goods sold = $875,000 / $235,800 - $685,255 = $425,545

The cost of goods sold for January is $425,545

Solution:5

Subtract the cost of goods sold from the net sales.

Gross profit = $87,657 - $43,775 = $43,882

The gross profit for October was $43,882