BXY Enterprise has the following balance at the end of march 2010
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: 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
