Gannon Company Had the Following Information at December 31 If the Cost of Goods Manufactured During the Year Amounted

question 136

Multiple Choice

Gannon Company had the following information at December 31: $$\begin{array} { l r } \text { Finished goods inventory, January 1 } & \$ 50,000 \\\text { Finished goods inventory, December 31 } & 150,000\end{array}$$ If the cost of goods manufactured during the year amounted to $2,100,000 and annual sales were $2,750,000, the amount of gross profit for the year is

• A)$650,000.
• B)$2,000,000.
• C)$750,000.
• D)$550,000.

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