Using the Information Below, Calculate Gross Profit for the Period

question 199

Multiple Choice

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.

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Definitions:

Workers

Individuals engaged in physical or mental effort to achieve a purpose or produce something, typically in exchange for wages.

Unspecified Labor

Work or labor contributions that are not clearly defined or categorized within a project or operational activity.

Direct Labor

The labor costs directly tied to the production of goods or provision of services, such as wages of workers on the manufacturing line.

Period Costs

Expenses that are not directly tied to production activities and are instead charged to the periods in which they occur, such as selling, general, and administrative expenses.