Using the Information Below, Calculate Gross Profit for the Period

question 150

Multiple Choice

Using the information below, calculate gross profit for the period.

• A) $714,000.
• B) $482,000.
• C) $1,022,000.
• D) $187,000.
• E) Cannot be determined from the information provided.

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Definitions:

LIFO

Last In, First Out; an inventory valuation method where the last items placed in inventory are the first ones to be used or sold.

Ending Inventory

The total value of a business’s merchandise, raw materials, and products not yet sold at the end of an accounting period.

FIFO

"First In, First Out," an inventory valuation method where goods first acquired are the first to be sold, used in accounting to calculate the cost of goods sold.

Net Income

The profit of a company after all expenses and taxes have been subtracted from total revenue.