At the beginning of the year, Berkshire Manufacturing had the following account

Question

At the beginning of the year, Berkshire Manufacturing had the following account balances:

WorkminusinminusProcess

2,000

Finished Goods Inventory

8,000

Manufacturing Overhead

0

Cost of Goods Sold

0

Sales Revenue

0

The following additional details are provided for the year:

Direct materials placed in production

$80,000

Direct labor incurred

191,000

Manufacturing overhead incurred

301,000

Manufacturing overhead allocated to production

291,000

Cost of jobs completed and transferred

501,000

Total revenue

760,000

Cost of goods sold

444,000

Calculate the gross profit Berkshire will report for the year.

WorkminusinminusProcess

2,000

Explanation / Answer

Gross profit = Total revenue - Cost of goods sold

= 760000-444000

Gross profit = $316000

So answer is $316000

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