Barger-Volvov Company Had the Following Information at December 31, 2020

question 123

Multiple Choice

Barger-Volvov Company had the following information at December 31, 2020: $\begin{array}{cc} \text { Finished goods inventory, January 1,2020 } &\$15,000\\ \text { Finished goods inventory, December 31, 2020 } &\$21,000\\\end{array}$
If the cost of goods manufactured during the year amounted to $332,500 and annual sales were $499,000, how much is the amount of gross profit for the year?

• A)$166,500
• B)$151,500
• C)$326,500
• D)$172,500

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Definitions:

Reasonably Possible

Refers to a situation or outcome that is within the realm of likelihood, though not certain, based on current knowledge and circumstances.

Probable Loss

An anticipated financial loss that has a greater than 50% chance of occurring, often recognized in financial statements in accordance with accounting principles.

Estimable Loss

A projected financial loss that can be anticipated and measured with reasonable accuracy.

Financial Statement Disclosure

The provision of information in a company's financial statements beyond the basic financial numbers, aimed at giving a complete understanding of the company's financial health.