Question

calculate gross profit from yhe following closing stock 70000,wages 40000, salary 30000, sales 688000 ,adjusted purchase 550000

Answer 1

hey!
here GP= sales - (wages +adjusted purchases)
= 688000-(40000+550000)
= 688000-590000
= 98000 ans
Hope have understood!

Answer 2

Answer:

Gross profit = 168000

Explanation:

Given:

1. Sales =  688000
2. Closing stock = 70000
3. Adjusted Purchases = 550000
4. Wages  = 40000
5. Salaries = 30000

Gross profit = Sales+ Closing stock - Adjusted purchases+ Wages i.e.

                    =  (688000+70000-550000-40000) i.e 168000.

Salaries are indirect expenses. Therefore, not considered for the purpose of gross profit.

Gross profit helps to understand the margin on total cost of selling the product. This includes all direct expenses and incomes for selling the product.

It also helps to understand the changes in inventory.