Question

Open stock=60000
Purchase during the year =160000
Import duty=18000
Closing stock =38000
Gross profit 15%on cost
Find cogs??

Answer 1

Answer:

hey mate here's the answer for your question

Explanation:

Closing stock = (Opening stock + purchases + gross profit) - sales 

                       = (1,00,000 + 6,00,000 + 1,00,000)- 5,00,000

                       = 8,20,000 - 5,00,000

                      = 3,00,000

Working note:- Calculation of gross profit 

(Gross profit is 25% of cost because we don't have cost we will calculate it with the help of sales)

If cost is 100 gross profit is 25% of cost then sale will be Gross profit + cost 

Hence 100 +25 = 125 

therefore, 

gross profit = 25/125 x 5,00,000

                    = 1,00,000

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