Question

The following information is provided by a dealer in computer chips. The dealer follows FIFO method for valuing stock, calculate from the following figures –DateparticularsApril 1, 2019Opening stock 750 chips @Rs1550 per chipPurchasesApril 10, 20191000 chips @Rs1750 per chipApril 20, 20191650 chips @ Rs1875 per chipSalesApril 15, 2019900 chips @Rs3000 per chipApril 16, 20191950 chips @ Rs 3250 per chipcalculate GROSS PROFIT?​

Answer 1

Answer:

Rs 4062500

Explanation:

April 1, 2019 Opening stock 750 chips @Rs1550 per chip

Purchases :

April 10, 2019 1000 chips @Rs1750 per chip

April 20, 2019 1650 chips @ Rs1875 per chip

Total stock price =  750*1550 +  1000*1750  + 1650*1875

= 1162500 + 1750000 + 3093750

= 6006250

Selling Price =  900 * 3000  +  1950 * 3250  =  9037500

Cost price of (900 + 1950 = 2850  = 750 + 1000 + 1100)  

=750*1550 +  1000*1750  + 1100*1875

= 4975000

Gross Profit = 9037500 - 4975000 = Rs 4062500

Cost of Good Available  = 550 * 1875 = Rs 1031250