Answer:
D) $169,000
Explanation:
Gross profit is the measurement of profit after providing for cost of goods sold, it don not include any other operating or non-operating expenses.
Here, for the provided information we have,
Cost of goods sold = Opening Inventory + Purchases in the period - Closing inventory
Opening Inventory = $27,000
Purchases = $174,000
Closing Inventory = $37,000
Thus, cost of goods sold = $27,000 + $174,000 - $37,000 = $164,000
Sales Revenue = $333,000
Therefore, Gross profit = Sales Revenue - Cost of goods sold
= $333,000 - $164,000 = $169,000
