What was the dollar amount of gross profit?

Question

Inventory at the beginning of the year cost $13,400. During the year, the company purchased (on account) inventory costing $84,000. Inventory that had cost $80,000 was sold on account for $95,000. At the end of the year, inventory was counted and its cost was determined to be $17,400.

Answer 1

Gross profit = sales - cost of goods sold

=95,000 - 80,000

= 15,000