Question

Clement Manufacturing makes carrying cases for portable electronic devices. Its costing records yield the following information:

Job No.	Date	Total cost of Job at October 31	Total manufacturing costs added in November
Started	Finished	Sold
1	10/03	10/12	10/13	\(1,300
2	10/03	10/30	11/01	1,400
3	10/17	11/24	11/27	1,000	\)900
4	10/29	11/29	12/03	1,200	1,200
5	11/08	11/12	11/14		650
6	11/23	12/06	12/09		500

Requirements

5. What is the gross profit for Job 3?

Short answer

The Gross profit for Job no. 3 is $400

Step-by-step solution

Net income

The net income of the company means the income earned after deducting all the expenses and the taxes incurred by the company in running the business.

Gross profit

$\begin{array}{c}\mathrm{Grossprofit}=\mathrm{Sales}-\mathrm{Costofgoodssold}\\ =\$2,300-\$1,900\\ =\$400\end{array}$