| 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
- D13,000
-
D9,000
- D5,000
- D1,000
The correct answer is: 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