sually Elegant Ltd at a unit price of $2,780 October 26 Purchased 70 pairs at a cost of $2,400 each but these were subject to a trade discount of 5%. November 10 Sold 60 pairs to Best City Store which yi
So What sells a variety of merchandise, including school sandals for girls. The business began the last quarter of 2013 with 30 pairs of the “Solar” brand at a total cost of $54,000.
The following transactions, relating to the “Solar” brand were completed during the quarter:
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October 3 |
Purchased 45 pairs of sandals at a cost of $1,900 each. |
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October 15 |
Sold 55 pairs to Casually Elegant Ltd at a unit price of $2,780 |
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October 26 |
Purchased 70 pairs at a cost of $2,400 each but these were subject to a trade discount of 5%. |
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November 10 |
Sold 60 pairs to Best City Store which yielded total sales revenue of $192,000. |
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November 14 |
Owing to an increased demand for this brand, the manager of So What purchased 80 additional pairs of the “Solar” brand at a unit cost of $2,500, but additionally there was freight charge of $100 on each pair. |
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November 24 |
Sold 60 pairs of sand to Big Buy Company at a price of $3,600 each. |
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November 30 |
A physical stock count on that date revealed that there were 42 pairs of the “Solar” brand in the warehouse. |
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December 4 |
Purchased 75 pairs of sandals at a total cost of $213,750. |
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December 15 |
5 pairs of the sandals purchased on December 4 were returned to the supplier as they were of the wrong description. |
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December 30 |
Sold 70 pairs to Regal Ltd. at a unit selling price of $4,400. |
All purchases were on
REQUIRED:
1. Calculate the gross profit for the period.
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