Calculate: (A) Net Sales, (B) Cost of Goods Sold, (C)

question 67

Essay

Calculate: (a) net sales, (b) cost of goods sold, (c) gross profit, and (d) net income from the following:

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Definitions:

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and represent the primary components of a finished product.

Finished Goods

Refers to products that have completed the manufacturing process but have not yet been sold or distributed to end customers.

Cost

The value of money that has been used up to produce something or deliver a service, and hence is not available for use anymore.

Finished Goods Inventory

The stock of completed products available for sale at the end of an accounting period.