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 James Company, a manufacturing firm, is preparing its financial statements for the year ended December...

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Accounting

 

James Company, a manufacturing firm, is preparing its financial statements for the year ended December 31, 2023. The following information pertains to its inventory:

Beginning inventory: Raw materials - $150,000 Work in process - $200,000 Finished goods - $300,000

Purchases during the year: Raw materials - $500,000 Direct labor costs - $350,000 Manufacturing overhead costs - $200,000

Ending inventory: Raw materials - $180,000 Work in process - $250,000 Finished goods - $320,000

During the year, the company sold finished goods with a total cost of goods sold amounting to $1,000,000. The company uses the FIFO method for inventory valuation.

Based on the given information, calculate the following for James Company:

  1. Cost of goods sold for the year.
  2. Gross profit for the year.

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