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

To calculate the gross profit for the Locomotive Division, we need to subtract the Cost of Goods Sold (COGS) from the Net Sales Revenue for that division. 
For the Locomotive Division, the Net Sales Revenue is $147,840 and the COGS is $100,560.
Therefore, Gross Profit = Net Sales Revenue - COGS
= $147,840 - $100,560
= $47,280. 
Hence, the correct answer is option D.

The Following Financial Information Was Summarized from the Accounting Records