Inventory at the beginning of the year cost $13,000. During the year, the company purchased (on account) inventory costing $82,000. Inventory that had cost $78,000 was sold on account for $93,400. At the end of the year, inventory was counted and its cost was determined to be $17,000.

What was the dollar amount of Gross Profit?

Write Journal Entries:

A) Record the inventory purchased of $82,000 on account.

B) Record the sales revenue of $93,400 on account.

C) Record the cost of goods sold of $78,000.

T-comm makes a variety of products. it is organized in two divisions, north and south. the managers for each division are paid, in part, based on the financial performance of their divisions. the south division normally sells to outside customers but, on occasion, also sells to the north division. when it does, corporate policy states that the price must be cost plus 20 percent to ensure a "fair" return to the selling division. south received an order from north for 300 units. south's planned output for the year had been 1,200 units before north's order. south's capacity is 1,500 units per year. the costs for producing those 1,200 units follow