Based on the following data, what is the gross profit for the company?Sales$ 1,000,000Net purchases of raw materials 600,000Cost of goods manufactured 800,000Marketing and administrative expenses 250,000Indirect manufacturing costs 500,000

$600,000

Explanation:

Sales = $ 1,000,000

Net purchases of raw materials = 600,000

Cost of goods manufactured = 800,000

Marketing and administrative expenses = 250,000

Indirect manufacturing costs = 500,000

                          Beginning inventory    Ending inventory

Work in process  = $500,000                  $400,000

Finished goods =   $100,000                   $500,000

Cost of goods sold:

= Beginning finished goods inventory + Cost of goods manufactured - Ending finished goods inventory

= $100,000 + $800,000 - $500,000

= $400,000

Gross profit = Sales - Cost of goods sold

                    = $ 1,000,000 - $400,000

                    = $600,000

answer; competency based pay;

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