The following financial information was summarized from the accounting records of Train Corporation for the current year ended December 31: The gross profit for the Locomotive Division is:
A) $57,960
B) $14,790
C) $27,240
D) $47,280

Question

The following financial information was summarized from the accounting records of Train Corporation for the current year ended December 31:  The gross profit for the Locomotive Division is:
A) $57,960 
B) $14,790 
C) $27,240 
D) $47,280

Quizplus · Accepted Answer

The gross profit for the Locomotive Division can be calculated as follows:
Sales revenue - Cost of goods sold = Gross profit
$312,340 - $265,060 = $47,280

The Following Financial Information Was Summarized from the Accounting Records