Using the information below, calculate gross profit for the period:$\begin{array}{lr}
\text { Sales revenues for the period }&\$1,304,000\
\
\text { Operating expenses for the period } & 239,000 \
\text { Finished Goods Inventory, January } 1 & 36,000 \
\text { Finished Goods Inventory, December } 31 & 41,000 \
\text { Cost of goods manufactured for the period } & 540,000
\end{array}$
A) $769,000.
B) $535,000.
C) $448,000.
D) $530,000.
E) $774,000.

Question

Quizplus · Accepted Answer

Gross profit is calculated as Sales Revenues minus Cost of Goods Sold (COGS). COGS is calculated as: Beginning Inventory + Cost of Goods Manufactured - Ending Inventory. Thus, COGS = $36,000 + $540,000 - $41,000 = $535,000. Gross Profit = $1,304,000 - $535,000 = $769,000.

Using the Information Below, Calculate Gross Profit for the Period