Question

1. Calculate the gross profit and cost of goods sold from the following information 3 Net Sales Rs. 9,00,000 Gross Profn is 20% on cost.
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Answer 1

Answer:

900000×100/120= 750000 cost of goods

900000 - 750000= 150000 profit

Answer 2

Answer:

Gross profit = 1,50,000

COGS = 7,50,000

Explanation:

Given:

1. Net sale = 9,00,000
2. Gross profit = 20% on cost

To find:

1. Gross profit
2. Cost of goods sold

Equation used:

1. Gross profit = Sale - COGS
2. Gross profit = Sale × ²⁰/₁₂₀

Solution:

Gross profit = 9,00,000 × ²⁰/₁₂₀

Gross profit = 1,50,000

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Gross profit = Sale - COGS

1,50,000 = 9,00,000 - COGS

COGS = 9,00,000 - 1,50,000

COGS = 7,50,000

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Final Answers:

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Gross profit = 1,50,000

COGS = 7,50,000