inventories

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 February 2011 Dear Sir/Madam,

Consider the following for Alpha Co. for the year 2005-06:
Cost of goods available for sale Rs.1,00,000
Total sales Rs.80,000
Opening stock of goods Rs.20,000
Gross profit margin Rs.25%
Closing stock of goods for the year 2005-06 was
(a) Rs.80,000
(b) Rs.60,000
(c) Rs.40,000
(d) Rs.36,000.

ANS: Rs.60000.

Please tell how to calculate?

S.A.BADAMIKAR

S.A.BADAMIKAR (Expert)
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25 February 2011 Sales 80000/-
Gp 25% =20000
Cost of Goods Sold Rs.60000
Opening Stock =20000
Goods available for Sale 100000
Total Available for Sale (20000+100000)(Assuming goods available for sale do not include Opening stock)
Closing Stock = 120000-60000=60000/-

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