Answer:
$600,000
Explanation:
Sales = $ 1,000,000
Net purchases of raw materials = 600,000
Cost of goods manufactured = 800,000
Marketing and administrative expenses = 250,000
Indirect manufacturing costs = 500,000
             Beginning inventory   Ending inventory
Work in process  = $500,000          $400,000
Finished goods = Â $100,000 Â Â Â Â Â Â Â Â Â $500,000
Cost of goods sold:
= Beginning finished goods inventory + Cost of goods manufactured - Ending finished goods inventory
= $100,000 + $800,000 - $500,000
= $400,000
Gross profit = Sales - Cost of goods sold
          = $ 1,000,000 - $400,000
          = $600,000
