WAEC Commerce 2014 Paper

Concept:Gross profit is the difference between sales revenue and the cost of goods sold.Explanation:First, calculate the cost of goods sold (COGS) for BXY Enterprise.COGS = Opening Stock + Purchases − Closing StockCOGS = $D6{,}000 + D23{,}000 - D8{,}000$COGS = $D21{,}000$Next, deduct the COGS from total sales to determine gross profit.Gross Profit = Sales − COGSGross Profit = $D30{,}000 - D21{,}000$Gross Profit = $D9{,}000$Salaries and wages of $D12{,}000$ are not included here because gross profit is calculated before operating expenses are deducted.Answer:The gross profit of BXY Enterprise is $D9{,}000$.Correct option: B. D9,000