A company had expenses other than cost of goods sold of $175,000.Determine sales and gross profit given cost of goods sold was $622,000 and net loss was ($41,000).
A)Sales: $838,000: gross profit: $216,000
B)Sales: $756,000: gross profit: $134,000
C)Sales: $797,000: gross profit: $756,000
D)Sales: $756,000: gross profit: $797,000
E)Sales: $134,000: gross profit: $216,000

Question

Quizplus · Accepted Answer

First, we can calculate the total expenses by adding the cost of goods sold ($622,000) and the expenses other than cost of goods sold ($175,000), which equals $797,000. 
Next, we know the net loss was ($41,000), which means total expenses ($797,000) minus gross profit equals ($41,000). Solving for gross profit, we get $756,000. 
Finally, we can calculate sales by adding gross profit ($756,000) and cost of goods sold ($622,000), which equals $1,378,000. However, we know from the answer choices that sales should be one of the options listed. Therefore, we can eliminate any answer choices that are not close to this amount. The closest option is B, which has a sales amount of $756,000. Therefore, the answer is B.

A Company Had Expenses Other Than Cost of Goods Sold