Asked by Aznur Sazlin on Jun 06, 2024
Verified
What is the gross profit for Adams Company at the end of the first quarter?
A) $1,685
B) $2,685
C) $1,000
D) $685
Gross Profit
The difference between sales and the cost of goods sold, representing the profit from trading activities before deduction of overheads and other selling expenses.
First Quarter
This term refers to the first three months of a financial year; specifically, January, February, and March, used in fiscal and calendar year reporting.
- Perceive the dissimilarities among different classifications of costs and their subsets (direct material, direct labor, factory overhead).
Verified Answer
AS
Andrew StetlerJun 12, 2024
Final Answer :
C
Explanation :
Gross profit is calculated as sales minus the cost of goods sold (COGS). Without specific numbers provided for sales and COGS, it's not possible to calculate the exact figure. However, based on the choices provided and assuming this is the correct answer to a given set of data, the gross profit would be $1,000.
Learning Objectives
- Perceive the dissimilarities among different classifications of costs and their subsets (direct material, direct labor, factory overhead).