Question

calculate cost of goods sold from the following: indirect expenses 15200, direct expenses 18600, sales 120000, net purchase 72000, sales return 12000, purchase return 8000, opening stock 16000, closing stock 28000​

Answer 1

Answer:

Net sales (cash sales + credit sales - return inward) 7,44,000

Add:- Closing stock (Lower of 54,000 or 50,400) 50,400

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7,94,400

Less:- Opening stock (90,000)

purchases ( 30,000 + 6,00,000 - 6,000) (6,24,000)

Direct expenses (1,200 + 2,400 + 1,800 + 600) (6,000)

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74,400

Answer 2

Given :

• Indirect expenses = 15200

• Direct expenses = 18,600

• Sales = 1,20,000

• Net Purchases = 72,000

• Sales Return = 12,000

• Purchase Return = 8000

• Opening Stock = 16,000

• Closing Stock = 28,000

To find :

• Cost of Goods Sold = ?

Formulae To find Cost of Goods Sold :

• Cost of Goods Sold = Opening stock + Net Purchases + Direct expenses - Closing Stock

Solution :

Cost of Goods Sold :

• Opening Stock = 16,000

• Net purchases = 72,000

• Direct Expenses = 18,600

• Closing Stock = 28,000

= 16,000 + 72,000 + 18,600 - 28,000

= 88,000 + 18,600 - 28,000

= 1,06,600 - 28,000

= 78,600

∴ Cost of Goods Sold = 78,600

Extra Formulaes :

• Gross Profit = Net sales - Cost of Goods

Sold

• Net sales = Gross Sales - Sales Return

• Net Purchases = Gross Purchase -

Purchase Return.