During year ended 30 June 2019, Rugger Ltd had net sales of $256 000. Inventory at 1 July 2018 was $30 000, and at 30 June 2019 it was $23 000. Purchases were $115 000. What was the gross profit for year ended 30 June 2019?
A) $12 000
B) $134 000
C) $141 000
D) None of the above

Question

Quizplus · Accepted Answer

Gross profit is calculated as net sales minus cost of goods sold (COGS). COGS is calculated as beginning inventory plus purchases minus ending inventory. In this case, COGS = $30,000 + $115,000 - $23,000 = $122,000. Therefore, gross profit = $256,000 - $122,000 = $134,000.

During Year Ended 30 June 2019, Rugger Ltd Had Net