Answer:
Gross profit= $186,300
Explanation:
Giving the following information:
It sold 15,000 units during the year.
The company has provided the following information:
Sales Revenue $535,000
Purchases (excluding Freight In) 347,000
Selling and Administrative Expenses 32,500
Freight In 15,200
Beginning Merchandise Inventory 43,000
Ending Merchandise Inventory 56,500
Gross profit= sales - cost of goods sold
Cost of goods sold= beginning merchandise inventory + purchases - ending merchandise inventory
Cost of goods sold=43000 + (347000 + 15200) - 56500= $348,700
Gross profit= 535000 - 348700= $186,300
