Question

Compute cost of goods sold for the year 2019-20 with the help of the following information.

Stock on 1st April, 2019
3,00,000
Stock on 31st March, 2020
4,00,000
Purchases during the year
15,00,000
Sales during the year
20,00,000
Wages
1,20,000​

Answer 1

Cost of goods sold = opening stock + purchase + wages - closing stock

= 300000 + 15,00,000 + 1,20,000 - 4,00,000

= 19,20,000 - 4,00,000

= 15,20,000

Gross profit / gross loss = net sales - COGS

= 20,00,000 - 15,20,000

= 4,80,000.

Thanks

Answer 2

Answer:

cost or goods sold = opening stock +net purchase+

wages - closing stock

= 3,00,000 +15,00,000 +1,20,000 -

4,00,000

= 15,20,000

gross profit / gross loss = net sales - cost of goods sold

= 20,00,000-15,20,000

=4,80,000

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