ocr: Calculating. Gross Profit The calculation of gross profit - is a rather more complex task for manufacturing entities since we are attempting to discover the profit they are earning purely from carrying out their manufacturing activity. That is, we need to compute the manufacturing or production costs of the goods that are soldin an accounting period so that we can compare the cost of manufacturing goods sold with the sales evenue earned by selling them. The manufacturing cost of goods sold IS calculated in a manufacturing account.
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