Question

Goods are transferred from department A to department B at a price 50% above cost. If the closing stock of department is Rs27000. Compute the stock reserve.

Answer 1

Goods are transferred from department A to department B at a price 50% above cost. If the closing stock of department is Rs27000. Compute the stock reserve.

Answer 2

Concept Introduction:

Stock reserve is the revenue that the company as a whole has not yet realised. However, the department that is transferring the items will make money if it does so at invoice price. that does not imply that the company made money.

Given, goods are transferred from department A to department B at a price $50$% above cost and the closing stock of department is Rs$27000$.

To find, the stock reserve.

Solution:

Closing Stock Formula (Ending) = Opening Stock + Purchases – Cost of Goods Sold.

$27000$ = opning stock $+ 13500- 50$

Stock = $13550$

Final Answer:

The final answer is $13550$.

#SPJ2