Using the information below, calculate gross profit for the period: $$\begin{array} { l r }
\text { Sales revenues for the period } & \$1, 304,000 \
\text { Operating expenses for the period } & \mathbf { 2 39 , 0 0 0 } \
\text { Finished Goods Irventory, Jaruary 1 } & \mathbf { 3 6 , 0 0 0 } \
\text { Finished Goods Irventory, December } 31 & 41,000 \
\text { Cost of goods marufactured for the period } & 540,000
\end{array}$$
A) $774,000.
B) $769,000.
C) $530,000.
D) $535,000.
E) $448,000.

Question

Using the information below, calculate gross profit for the period: $$\begin{array} { l r } 
\text { Sales revenues for the period } & \$1, 304,000 \
\text { Operating expenses for the period } & \mathbf { 2 39 , 0 0 0 } \
\text { Finished Goods Irventory, Jaruary 1 } & \mathbf { 3 6 , 0 0 0 } \
\text { Finished Goods Irventory, December } 31 & 41,000 \
\text { Cost of goods marufactured for the period } & 540,000
\end{array}$$
A) $774,000.
B) $769,000.
C) $530,000.
D) $535,000.
E) $448,000.

Quizplus · Accepted Answer

Gross profit is the difference between sales revenue and the cost of goods sold. To calculate the cost of goods sold, we need to add the cost of goods manufactured to the beginning inventory and subtract the ending inventory.

Cost of Goods Sold = Cost of Goods Manufactured + Beginning Inventory - Ending Inventory
Cost of Goods Sold = $540,000 + $36,000 - $41,000
Cost of Goods Sold = $535,000

Now that we have the cost of goods sold, we can calculate the gross profit:

Gross Profit = Sales Revenue - Cost of Goods Sold - Operating Expenses
Gross Profit = $1,304,000 - $535,000 - $239,000
Gross Profit = $530,000

Therefore, the best answer is B) $769,000.

Using the Information Below, Calculate Gross Profit for the Period