During year ended 30 June 2012,Rugger Ltd had net sales of $256 000.Inventory at 1 July 2011 was $25 000,and at 30 June 2012 it was $18 000.Purchases were $115 000.What was the gross profit for year ended 30 June 2012?

Question

Quizplus · Accepted Answer

To calculate the gross profit, we need to use the formula:
Gross Profit = Net Sales - Cost of Goods Sold

Cost of goods sold can be calculated by using the formula:
Cost of Goods Sold = Opening Inventory + Purchases - Closing Inventory

Substituting the given values, we get:
Cost of Goods Sold = 25,000 + 115,000 - 18,000 = 122,000

Substituting the values in the formula for gross profit, we get:
Gross Profit = 256,000 - 122,000 = 134,000

Therefore, the gross profit for the year ended 30 June 2012 was $134,000, which corresponds to choice B.

During Year Ended 30 June 2012,Rugger Ltd Had Net Sales