Using the Information Below, Calculate Gross Profit for the Period

question 190

Multiple Choice

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

$\begin{array}{lr}\text {Beginning Raw Materials Inventory }&\$25,000\\\text { Ending Raw Materials Inventory }&30,000\\\text { Beginning Work in Process Inventory }&55,000\\\text { Ending Work in Process Inventory }&64,000\\\text { Beginning Finished Goods Inventory }&80,000\\\text { Ending Finished Goods Inventory }&67,000\\\text { Cost of Goods Sold for the period }&540,000\\\text { Sales Revenues for the period }&1,254,000\\\text { Operating Expenses for the period }&232,000\end{array}$

• A) $714,000.
• B) $482,000.
• C) $1,022,000.
• D) $187,000.
• E) $727,000.

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Definitions:

Restaurant

A business establishment where meals or refreshments may be purchased by consumers.

Consumer Goods

Items that are purchased for personal or household use, rather than for manufacturing or resale purposes.

Secured Creditor

A lender protected by collateral, giving them a right to seize assets if loans are not repaid.

Repossess

The act of taking back possession of property by a seller or lender from the buyer or borrower, usually due to failure to meet the terms of the sale or loan.