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On June 1, Haimes Company spent $200,000 to purchase 250,000 coffee mugs to sell at its...

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Accounting

On June 1, Haimes Company spent $200,000 to purchase 250,000 coffeemugs to sell at its retail store. During the year, Haimes Companyrecorded the following sales of coffee mugs:     Month     Mugs solds    Selling price per mug     June       16,000         $2.00     July       35,000         $2.50     August      2,000         $3.00     September    31,000         $2.00     October     46,000         $3.00     November     47,000         $4.00     December     40,000         $3.50Calculate the gross profit earned by Haimes Company for the monthsAugust through November.

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August September October November
Mugs Sold 2000 31000 46000 47000
Selling Price per mug $                 3.00 $                   2.00 $              3.00 $               4.00
Sales $          6,000.00 $         62,000.00 $ 1,38,000.00 $ 1,88,000.00
Less: Cost of goods sold (Purchase price per mug * Mugs sold ) $          1,600.00 $         24,800.00 $    36,800.00 $     37,600.00
Gross Profit $         4,400.00 $         37,200.00 $1,01,200.00 $ 1,50,400.00
Purchase price per mug = $200,000/250,000 = $0.80 per mug

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