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 is calculated by subtracting the cost of goods sold from the total sales revenue. From the given information, we have:
Total Sales Revenue for Locomotive Division = $143,040
Cost of Goods Sold for Locomotive Division = $95,760
Therefore, Gross Profit for Locomotive Division = Total Sales Revenue - Cost of Goods Sold = $143,040 - $95,760 = $47,280. 
Hence, the correct answer is D.

The Following Financial Information Was Summarized from the Accounting Records