If sales are Rs. 100,000 and the rate of G.P on cost of goods sold is 25%, then the cost of goods sold will be
Answers
Explanation:
sales are Rs. 100,000
G.P on cost of goods sold is 25%,
sales = cost of goods sold + G.P
Assume,
cost be 100
then gross profit on cost is
100× 25/100 = 25
sale = cost + Gross profit
= 100 + 25 =125
so,
percenrage of gross profit on sale is 25/125×100=20%
G.P = 1,00,000 × 20/100
= 20,000
G.P = Rs 20,000
cost of goods sold = Net sales - G.P
= 100,000 - 20,000
= 80,000
cost of goods sold = Rs 80,000
Hence, cost of goods sold = Rs 80,000
Answer:
Cost of Goods Sold will be Rs. 80,000
Explanation:
Solution :
Net Sales = Rs. 1,00,000
Gross Profit = 25 % on Cost of Goods Sold
Cost of Goods Sold = ??
Net Sales = Cost of Goods Sold + Gross Profit
Let,
Cost of Goods Sold = x
Net Sales = Cost of Goods Sold + Gross Profit
⇒ 1,00,000 = x + 25 % of x
⇒ 1,00,000 = x + 25x/100
⇒ 1,00,000 = x + 0.25x
⇒ 1,00,000 = 1.25x
⇒ 1.25x = 1,00,000
⇒ x = 1,00,000 / 1.25
⇒ x = 80,000
Cost of Goods Sold = Rs. 80,000
Gross Profit = 25 % on Cost of Goods Sold
⇒ 80,000 × (25/100)
⇒ 20,000
Gross Profit = Rs. 20,000
Therefore, the Cost of Goods Sold will be Rs. 80,000