Oriole Company had the following information at December 31:Finished goods inventory, January 1$ 70000Finished goods inventory, December 3190000If the cost of goods manufactured during the year amounted to $2200000 and annual sales were $2750000, the amount of gross profit for the year is $550000. $2180000. $570000. $530000.

Name: Oriole Company had the following information at December 31:Finished g
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: Oriole Company had the following information at December 31:Finished goods inventory, January 1$ 70000Finished goods inventory, December 3190000If the cost of goods manufactured during the year amounted to $2200000 and annual sales were $2750000, the

Gross margin (gross profit): Gross margin is the amount of revenue earned from goods sold over the costs incurred for the goods sold.Calculate the gross profit for the year: Particulars Amount ($) Amount ($) Sales 2,750,000 Cost of goods manufactured 2,200,000 Add: Finished good inventory, Beginning 70,000 Less: Finished good inventory, Closing (90,000) Cost of goods sold (2,180,000) Gross profit 570,000 Therefore, the correct answer is option 3) $570,000.

Answered: Oriole Company had the following…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Topic Video

Question

Oriole Company had the following information at December 31:

Finished goods inventory, January 1	$ 70000
Finished goods inventory, December 31	90000

If the cost of goods manufactured during the year amounted to $2200000 and annual sales were $2750000, the amount of gross profit for the year is

$550000.

$2180000.

$570000.

$530000.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions