sales revenues for the period = $1,304,000
operating expenses for the period = $239,000
finished goods inventory, january 1 = 36,000
finished goods inventory, december 31 = 41,000
cost of goods manufactured for the period = $540,000
This is how we calculate this;
Beginning Finished Goods Inventory + Cost of goods manufactured - Ending Finished Goods Inventory = Cost of goods sold
Cost of goods sold = $36,000 + $540,000 - $41,000
= $535,000
Gross Profit = Sales - Cost of Goods Sold;
Gross Profit = $1,304,000 - $535,000
= $769,000
