please solve the following question:
Cost of Goods Sold Rs. 100,000.00
Sale Rs. 80,000.00
OPening Stock Rs. 20,000.00
Gross Profit Margin 20% &
what will be closing stock
18 Replies
ashish gupta
( student)
(1922 Points)
Replied 12 June 2012
If Gross profit is 20 % then how cost of goods sold can be higher than sales.
frank
(owner)
(131 Points)
Replied 12 June 2012
COGS cannot be higher than the sales unless the goods are sold for a loss. Ashish is right. Hemchand please check whether the goods are sold below the cost price.
frank
(owner)
(131 Points)
Replied 12 June 2012
COGS cannot be higher than the sales unless the goods are sold for a loss. Ashish is right. Hemchand please check whether the goods are sold below the cost price.
frank
(owner)
(131 Points)
Replied 12 June 2012
COGS cannot be higher than the sales unless the goods are sold for a loss. Ashish is right. Hemchand please check whether the goods are sold below the cost price.
BHARAT BAMBHAROLIYA
(CA FINAL)
(57 Points)
Replied 12 June 2012
Please place the correct question .................
MOHD ANZAR ALI
(EMPLOYEE)
(78 Points)
Replied 12 June 2012
since COGS = 100000
WHERE SALE = COGS+ PROFIT
THEN TOTAL SALE AVAILABLE =100000+25000
HENCE AVAILABE FOR SALE = 125000
ACTUAL SALE 80000
THEN CLOSING STOCK = 125000-80000 = 45000
take 20% on sale are equal 25% on cost.
Hemchand Kohli
(Accountant)
(889 Points)
Replied 12 June 2012
Ya but in Books this was the question, and i think question is wrong and what will be closing stock if there is Gross Loss 20% instead of GP
MOHD ANZAR ALI
(EMPLOYEE)
(78 Points)
Replied 12 June 2012
since COGS = 100000
WHERE SALE = COGS+ PROFIT
THEN TOTAL SALE AVAILABLE =100000+25000
HENCE AVAILABE FOR SALE = 125000
ACTUAL SALE 80000
THEN CLOSING STOCK = 125000-80000 = 45000
take 20% on sale are equal 25% on cost.
MOHD ANZAR ALI
(EMPLOYEE)
(78 Points)
Replied 12 June 2012
since COGS = 100000
WHERE SALE = COGS+ PROFIT
THEN TOTAL SALE AVAILABLE =100000+25000
HENCE AVAILABE FOR SALE = 125000
ACTUAL SALE 80000
THEN CLOSING STOCK = 125000-80000 = 45000
further it may treat closing stock on cost value
45000-9000 = 36000
take 20% on sale are equal 25% on cost.
CA. Amit Prajapati
(Chartered Accountant)
(118 Points)
Replied 12 June 2012
But COGS = Opg Stock + Production or Purchased Stock - Clsg Stock ?
MOHD ANZAR ALI
(EMPLOYEE)
(78 Points)
Replied 12 June 2012
since COGS = 100000
WHERE SALE = COGS+ PROFIT
THEN TOTAL SALE AVAILABLE =100000+25000
HENCE AVAILABE FOR SALE = 125000
ACTUAL SALE 80000
THEN CLOSING STOCK = 125000-80000 = 45000
if question specially define only on cost then further it may treat closing stock on cost value
45000-9000 = 36000
take 20% on sale are equal 25% on cost.
MOHD ANZAR ALI
(EMPLOYEE)
(78 Points)
Replied 12 June 2012
since COGS = 100000
WHERE SALE = COGS+ PROFIT
THEN TOTAL SALE AVAILABLE =100000+25000
HENCE AVAILABE FOR SALE = 125000
ACTUAL SALE 80000
THEN CLOSING STOCK = 125000-80000 = 45000
if question specially define only on cost then further it may treat closing stock on cost value
45000-9000 = 36000
take 20% on sale are equal 25% on cost.
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