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In: Accounting

FIllmore Company began operations on Sept. 1 by purchasing$6,000 of inventory and $600 of cleaning...

FIllmore Company began operations on Sept. 1 by purchasing $6,000 of inventory and $600 of cleaning supplies.  During the month, the company generated $7,500 of sales revenue. On Sept. 30, the company had $2,100 of inventory remaining, along with $400 of cleaning supplies. What was FIllmore Company's gross profit for the month of September?Note 3,400 is wrong somehow!

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Expert Solution

Purchases = $6,000

Ending inventory = $2,100

Cost of goods sold= Purchases- Ending inventory

= 6,000-2,100

= $3,900

Sales = $7,500

Gross profit = Sales - Cost of goods sold

= 7,500-3,900

= $3,600

FIllmore Company's gross profit for the month of September is $3,600.


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