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 for the Locomotive Division can be calculated as:
Net Sales Revenue – Cost of Goods Sold = Gross Profit
$369,600 – $322,320 = $47,280.
Therefore, the correct option is D.

The Following Financial Information Was Summarized from the Accounting Records