Question

Cost of material
consumed – Rs. 2,33,450,
Factory Overheads -
Rs.1,23,100, Closing WIP
Rs. 17500, Sales - Rs.
7,89,000. Calculate Gross
Profit.​

Answer 1

Explanation:

Cost of material

consumed – Rs. 2,33,450,

Factory Overheads -

Rs.1,23,100, Closing WIP

Rs. 17500, Sales - Rs.

7,89,000. Calculate Gross

Profit.

Answer 2

Given:

Cost of material consumed – Rs. 2,33,450

Factory Overheads - Rs.1,23,100

Closing WIP - Rs. 17500

Sales - Rs.7,89,000

To find:

Calculate Gross Profit.

Solution:

Gross profit is the profit made after subtracting all the costs related to manufacturing and services.

​Here to find gross profit we will first find the total cost

Total cost =

Cost of material consumed  + Factory Overheads + Closing WIP

Total cost =   2,33,450 + 1,23,100 + 17500

Total cost = Rs. 374050

Now we know that total sales are Rs.7,89,000

Therefore, gross profit will be

Gross profit = Sales - total cost

Gross profit = 7,89,000 - 374050

Gross profit = Rs. 414950

Therefore gross profit will be Rs. 414950