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During its first month of operations, Purrfect Pets purchased 5,400 bags of dog food at a cost of $2 a bag and sold all 5,400 bags of dog food on account with payment terms of 3/10, n/30 for $11 each. A total of 2,600 of these bags were sold to customers who paid within the discount period; the other customers paid after the discount period had ended. Sales allowances totaling $220 were granted to customers whose dogs did not like the dog food. Required: Calculate the gross profit for the month. Calculate the gross profit percentage for the month.

Respuesta :

Zviko

Answer:

the gross profit for the month is $47,522

the gross profit percentage for the month is 81.48%

Explanation:

gross profit calculation for the month

Sales ( 5,400 × $11)                                             59,400

Less Discount Allowed (2,600×$11×3%)            (   858)

Less Sales Allowances $220                             (   220)

Net Sales                                                             58,322

Less Cost of Goods Sold

Opening Stock                                     0

Add Purchases (5,400 × $2)         10,800

Less Closing Stock                              0           (10,800)

Gross Profit                                                         47,522

gross profit percentage for the month

gross profit percentage = gross profit / sales × 100

                                         =  47,522/ 58,322 × 100

                                         = 81.48%

Tundexi

The gross profit for the month is $47,522 and gross profit percentage for the month is 81.48%.

Particulars                                                           Amount

Sales (5,400 × $11)                                              $59,400

Less: Discount Allowed (2,600×$11×3%)          ($858)

Less: Sales Allowances $220                           ($220)  

Net Sales                                                             $58,322

Less Cost of Goods Sold

Opening Stock                                     $0

Add Purchases (5,400 × $2)          $10,800

Less Closing Stock                              $0           ($10,800)

Gross Profit                                                          $47,522

Gross profit percentage = Gross profit / Sales * 100

Gross profit percentage = $47,522 / $58,322 * 100

Gross profit percentage = 81.48%

Hence, the gross profit for the month is $47,522 and gross profit percentage for the month is 81.48%.

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