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

Name: On June 1, Haimes Company spent $200,000 to purchase 250,000
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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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