Determine the gross profit and net income


Response to the following problem:

The following information is available for Gonzalez Manufacturing Company for the month ending March 31, 2010:

Cost of goods manufactured .........................$240,000

Selling expenses ........................................ 76,500

Administrative expenses .............................. 40,500

Sales ..................................................... 486,000

Finished goods inventory, March 1 ................. 54,000

Finished goods inventory, March 31 ............... 50,000

For the month ended March 31, 2010, determine Gonzalez's

(a) Cost of goods sold,

(b) Gross profit, and

(c) Net income.

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Financial Accounting: Determine the gross profit and net income
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