Question

Opening stock Rs.1,20,000,Purchases Rs.2,80,000,Closing stock Rs.80,000,Sales Rs.400,000.The percentage of gross profit on sales is​

Answer 1

Explanation:

COGS = Opening stock + Purchases - Closing stock ,

COGS = 1,20,000 + 2,80,000, - 80,000

COGS = 3,20,000

GP = Sales - COGS

GP = 4,00,000 - 3,20,000

GP = 80,000

= 80,000/4,00,000 × 100

= 20%