Question

Hello I need help finding out the

Gross Profit

Gross Profit Percentage

FindMe Inc., (FI) has developed a coin-sized tracking tag that attaches to key rings, wallets, and other items and can be prompted to emit a signal using a smartphone app. FI sells these tags, as well as water-resistant cases for the tags, with terms FOB shipping point. Assume FI has no inventory at the beginning of the month, and it has outsourced the production of its tags and cases. FI uses FIFO and has entered into the following transactions:

Jan.	2:		FI purchased and received 210 tags from Xioasi Manufacturing (XM) at a cost of $6 per tag, n/15.
Jan.	4:		FI purchased and received 20 cases from Bachittar Products (BP) at a cost of $2 per case, n/20.
Jan.	6:		FI paid cash for the tags purchased from XM on Jan. 2.
Jan.	8:		FI mailed 110 tags via the U.S. Postal Service (USPS) to customers at a price of $24 per tag, on account.
Jan.	11:		FI purchased and received 310 tags from XM at a cost of $9 per tag, n/15.
Jan.	14:		FI purchased and received 110 cases from BP at a cost of $3 per case, n/20.
Jan.	16:		FI paid cash for the cases purchased from BP on Jan. 4.
Jan.	19:		FI mailed 70 cases via the USPS to customers at a price of $10 per case, on account.
Jan.	21:		FI mailed 210 tags to customers at a price of $24 per tag.

	Tags Cases Gross Profit Gross Profit Percentage

Answer 1

Computation of Sales (Tags)

Date	Unit sales (Tags)	Unit sale price
Jan.8	110	$24	$2,640
Jan.21	210	$24	$5,040
Total	320		$7,680

Computation of Cost of goods sold (Tags)

Date	Unit purchases	Unit cost price
Jan.2	110	$6	$660
	100	$6	$600
Jan.11	110	$9	$990
Total	320		$2,250

Computation of Gross profit and Gross profit percentage (Tags)

Sales	$7,680
Less: Cost of goods sold	2,250
Gross profit	$5,430
Gross profit percentage ($5,430 / 7,680 * 100)	70.7%

Computation of Sales (Cases)

Date	Unit sales (Cases)	Unit sale price
Jan.19	70	$10	$700
Total	70		$700

Computation of Cost of goods sold (Cases):

Date	Unit purchases	Unit cost price
Jan.4	20	$2	$40
Jan.14	50	$3	$150
Total	70		$190

Computation of Gross profit and Gross profit percentage (Cases):

Sales	$700
Less: Cost of goods sold	190
Gross profit	$510
Gross profit percentage ($510 /700 * 100)	72.86%