| opening stock | D6,000 |
| purchases | D23,000 |
| salaries and wages | D12,000 |
| closing stock | D8,000 |
| sales | D30,000 |
Use the information above to answer the following question.
calculate the gross profit by BYX Enterprise
-
A.
D13,000 -
B.
D9,000 -
C.
D5,000 -
D.
D1,000
Correct Answer: Option B
Explanation
gross profit = sales – cost of goods sold
(cost of goods sold is gotten as = opening stock + purchases – closing stock)
(COGS= 6000 + 23000 – 8000 = 21000) ”since we now know the value of cost of sales, we can now calculate the gross profit”
gross profit= 30,000 – 21,000 = 9,000