Using the information below, calculate gross profit for the period.

Sales revenues for the period $1,214,000

Operating expenses for the period $230,000

Finished Goods Inventory, January 1 35,100

Finished Goods Inventory, December 31 40,100

Cost of goods manufactured for the period $495,000

Answers: (A) $729,000. (B) $724,000. (C) $485,000. (D) $490,000. (E) $413,800.

The correct answer is B: $724,000

Explanation:

Giving the following information:

Sales revenues for the period $1,214,000

Operating expenses for the period $230,000

Finished Goods Inventory, January 1 35,100

Finished Goods Inventory, December 31 40,100

Cost of goods manufactured for the period $495,000

We need to calculate the gross profit.

Gross profit = Sales revenue - cost of goods sold

Cost of good sold = Beginning goods inventory + Cost of goods manufactured for the period - finished goods inventory

COGS = 35100 + 495000 - 40100 = 490000

Gross profit = 1214000 - 490000 = $724000