Question

find out CGS cost of goods sold and gross profit
Opening stock 100,000
Purchases 200,000
Direct expenses 50,000
Closing stock 60,000
Sales 400,000​

Answer 1

Explanation:

Opening stock 1,00,000

Purchases 2,00,000

Direct expenses 50,000

Closing stock 60,000

Sales 400,000

COGS = Opening stock + Purchases + Direct expenses - Closing stock

=> 1,00,000 + 2,00,000 + 50,000 - 60,000

COGS = 2,90,000

GP = Sales - COGS

=> 400,000 - 2,90,000

=> 1,10,000

GP =1,10,000

Therefore, cost of goods sold = Rs. 2,90,000 and Gross profit = Rs.1,10,000

Answer 2

Explanation:

Given :

Opening stock 1,00,000

Purchases 2,00,000

Direct expenses 50,000

Closing stock 60,000

Sales 4,00,000

To find :

Cost Of Goods Sold

Gross Profit

Solution :

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

$\longrightarrow$ 1,00,000 + 2,00,000 + 50,000 - 60,000

$\longrightarrow$ 3,50,000 - 60,000

$\longrightarrow$ 2,90,000

Cost of Goods Sold = 2,90,000

Gross Profit = Net Sales - Cost of Goods Sold

$\longrightarrow$ 400,000 - 2,90,000

$\longrightarrow$ 1,10,000

Gross Profit = 1,10,000

∴ Cost Of Goods Sold = Rs. 2,90,000 Gross profit = Rs. 1,10,000