Calculation of Total Sales:
To calculate the total sales, we need to consider the beginning stock, purchases, and ending stock.

Given:
Beginning stock = 10,000
Purchases = 38,000
Ending stock = 7,000

We can calculate the total sales using the formula:

Total Sales = (Beginning Stock + Purchases) - Ending Stock

Substituting the values:
Total Sales = (10,000 + 38,000) - 7,000
Total Sales = 48,000 - 7,000
Total Sales = 41,000

Therefore, the total sales for the given data is 41,000.

Calculation of Gross Profit:
To calculate the gross profit, we need to consider the total sales and the rate of gross profit.

Given:
Total Sales = 41,000
Rate of Gross Profit = 1/6

We can calculate the gross profit using the formula:

Gross Profit = Total Sales * Rate of Gross Profit

Substituting the values:
Gross Profit = 41,000 * 1/6
Gross Profit = 41,000/6
Gross Profit ≈ 6,833.33

Therefore, the gross profit for the given data is approximately 6,833.33.

Explanation:
The total sales are calculated by adding the beginning stock and purchases, and then subtracting the ending stock. This gives us the total value of goods sold during the given period.

The gross profit is calculated by multiplying the total sales by the rate of gross profit. The rate of gross profit is usually expressed as a fraction or percentage and represents the profit margin on each sale.

In this case, the rate of gross profit is given as 1/6, which means that for every 6 units sold, there is a profit of 1 unit. Multiplying the total sales by this rate gives us the gross profit.

It is important to note that the gross profit is the profit made before deducting any expenses or taxes. It represents the profit generated solely from the sales of goods.

Overall, by calculating the total sales and gross profit, we can analyze the financial performance of a business and make informed decisions regarding pricing, inventory management, and profitability.