The following financial information was summarized from the accounting records of Block Corporation for the current year ended December 31: The gross profit for the Hardware Division is:
A) $103,000.
B) $229,800.
C) $176,400.
D) $76,200.

Question

The following financial information was summarized from the accounting records of Block Corporation for the current year ended December 31:  The gross profit for the Hardware Division is:
A) $103,000. 
B) $229,800. 
C) $176,400. 
D) $76,200.

Quizplus · Accepted Answer

The gross profit can be calculated as follows:
Revenue for Hardware Division: $544,000
Cost of goods sold for Hardware Division: $367,600
Gross profit for Hardware Division: $544,000 - $367,600 = $176,400.

The Following Financial Information Was Summarized from the Accounting Records