Question

Opening stock 500 Purchases 2,500 Sales 3,600 Closing stock 300. Find the Gross Profit

Answer 1

Answer:

Question:

Find the Gross profit

Solution:

Formula of Gross profit= Sales -Cost of goods sold(COGS)

To find gross profit , first we find COGS(cost of goods sold)

Formula of COGS = Opening stock+ Purchase- Closing stock

Opening stock=500

Purchase=2500

Closing stock=300

500+2500-300=2700

So,COGS(cost of goods sold)=2700

Now,we find Gross profit

Gross profit=Sales-COGS

=3600-2700

=900

So,the Gross profit is 900.

Hope it will be help you