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4.Consider the following for Q Co.for the year 2019-20 : Cost of goods available for sale quad ₹1 00 000 Total sales Opening inventory of goods quad ₹80 000 Gross profit margin on sales Closing inventory of goods for the year 2019-20 as (a) ₹80 000 (b) ₹60 000 (e) ₹40 000?
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4.Consider the following for Q Co.for the year 2019-20 : Cost of goods...
Calculation of Closing Inventory for Q Co. for the year 2019-20
Given data:
Cost of goods available for sale = ₹1,00,000
Total sales = ?
Opening inventory of goods = ₹80,000
Gross profit margin on sales = ?
Closing inventory of goods for the year 2019-20 = ?
Step 1: Calculation of Cost of Goods Sold (COGS)
COGS = Cost of goods available for sale - Closing inventory of goods
COGS = ₹1,00,000 - Closing inventory of goods
Step 2: Calculation of Gross Profit Margin on Sales
Gross Profit Margin on Sales = Gross Profit / Total Sales
Gross Profit Margin on Sales = (Total Sales - COGS) / Total Sales
Gross Profit Margin on Sales = (Total Sales - (₹1,00,000 - Closing inventory of goods)) / Total Sales
Gross Profit Margin on Sales = (Total Sales - ₹1,00,000 + Closing inventory of goods) / Total Sales
Step 3: Calculation of Closing Inventory
Given options for Closing Inventory are:
(a) ₹80,000
(b) ₹60,000
(c) ₹40,000
We need to check which option satisfies the calculated Gross Profit Margin on Sales.
Option (a) ₹80,000:
Gross Profit Margin on Sales = (Total Sales - ₹20,000) / Total Sales
Gross Profit Margin on Sales cannot be calculated as Total Sales is not given.
Option (b) ₹60,000:
Gross Profit Margin on Sales = (Total Sales - ₹40,000) / Total Sales
Gross Profit Margin on Sales cannot be calculated as Total Sales is not given.
Option (c) ₹40,000:
Gross Profit Margin on Sales = (Total Sales - ₹60,000) / Total Sales
Gross Profit Margin on Sales = (Total Sales - ₹40,000) / Total Sales
Gross Profit Margin on Sales = 0.4
We know that Q Co. has a Gross Profit Margin on Sales of 0.4.
Hence, the correct option for Closing Inventory is (c) ₹40,000.
Final Calculation:
COGS = ₹1,00,000 - ₹40,000 = ₹60,000 (Option b is wrong)
Gross Profit Margin on Sales = 0.4 (Option a is wrong)
Closing inventory of goods = ₹40,000 (Option c is correct)
Given data:
Cost of goods available for sale = ₹1,00,000
Total sales = ?
Opening inventory of goods = ₹80,000
Gross profit margin on sales = ?
Closing inventory of goods for the year 2019-20 = ?
Step 1: Calculation of Cost of Goods Sold (COGS)
COGS = Cost of goods available for sale - Closing inventory of goods
COGS = ₹1,00,000 - Closing inventory of goods
Step 2: Calculation of Gross Profit Margin on Sales
Gross Profit Margin on Sales = Gross Profit / Total Sales
Gross Profit Margin on Sales = (Total Sales - COGS) / Total Sales
Gross Profit Margin on Sales = (Total Sales - (₹1,00,000 - Closing inventory of goods)) / Total Sales
Gross Profit Margin on Sales = (Total Sales - ₹1,00,000 + Closing inventory of goods) / Total Sales
Step 3: Calculation of Closing Inventory
Given options for Closing Inventory are:
(a) ₹80,000
(b) ₹60,000
(c) ₹40,000
We need to check which option satisfies the calculated Gross Profit Margin on Sales.
Option (a) ₹80,000:
Gross Profit Margin on Sales = (Total Sales - ₹20,000) / Total Sales
Gross Profit Margin on Sales cannot be calculated as Total Sales is not given.
Option (b) ₹60,000:
Gross Profit Margin on Sales = (Total Sales - ₹40,000) / Total Sales
Gross Profit Margin on Sales cannot be calculated as Total Sales is not given.
Option (c) ₹40,000:
Gross Profit Margin on Sales = (Total Sales - ₹60,000) / Total Sales
Gross Profit Margin on Sales = (Total Sales - ₹40,000) / Total Sales
Gross Profit Margin on Sales = 0.4
We know that Q Co. has a Gross Profit Margin on Sales of 0.4.
Hence, the correct option for Closing Inventory is (c) ₹40,000.
Final Calculation:
COGS = ₹1,00,000 - ₹40,000 = ₹60,000 (Option b is wrong)
Gross Profit Margin on Sales = 0.4 (Option a is wrong)
Closing inventory of goods = ₹40,000 (Option c is correct)
Community Answer
4.Consider the following for Q Co.for the year 2019-20 : Cost of goods...
Opening stock + purchases = cost of goods available for sale
therefore, opening stock+ purchases = ₹100000
cost of good sold = sales - profit margin
cost of goods sold = 80000- (80000*25%)= ₹60000
so,
cost of goods available for sale - cost of good sold = closing stock
→100000 - 60000 = ₹40000
Ans. option (c)
therefore, opening stock+ purchases = ₹100000
cost of good sold = sales - profit margin
cost of goods sold = 80000- (80000*25%)= ₹60000
so,
cost of goods available for sale - cost of good sold = closing stock
→100000 - 60000 = ₹40000
Ans. option (c)
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4.Consider the following for Q Co.for the year 2019-20 : Cost of goods available for sale quad ₹1 00 000 Total sales Opening inventory of goods quad ₹80 000 Gross profit margin on sales Closing inventory of goods for the year 2019-20 as (a) ₹80 000 (b) ₹60 000 (e) ₹40 000?
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4.Consider the following for Q Co.for the year 2019-20 : Cost of goods available for sale quad ₹1 00 000 Total sales Opening inventory of goods quad ₹80 000 Gross profit margin on sales Closing inventory of goods for the year 2019-20 as (a) ₹80 000 (b) ₹60 000 (e) ₹40 000? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about 4.Consider the following for Q Co.for the year 2019-20 : Cost of goods available for sale quad ₹1 00 000 Total sales Opening inventory of goods quad ₹80 000 Gross profit margin on sales Closing inventory of goods for the year 2019-20 as (a) ₹80 000 (b) ₹60 000 (e) ₹40 000? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 4.Consider the following for Q Co.for the year 2019-20 : Cost of goods available for sale quad ₹1 00 000 Total sales Opening inventory of goods quad ₹80 000 Gross profit margin on sales Closing inventory of goods for the year 2019-20 as (a) ₹80 000 (b) ₹60 000 (e) ₹40 000?.
4.Consider the following for Q Co.for the year 2019-20 : Cost of goods available for sale quad ₹1 00 000 Total sales Opening inventory of goods quad ₹80 000 Gross profit margin on sales Closing inventory of goods for the year 2019-20 as (a) ₹80 000 (b) ₹60 000 (e) ₹40 000? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about 4.Consider the following for Q Co.for the year 2019-20 : Cost of goods available for sale quad ₹1 00 000 Total sales Opening inventory of goods quad ₹80 000 Gross profit margin on sales Closing inventory of goods for the year 2019-20 as (a) ₹80 000 (b) ₹60 000 (e) ₹40 000? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 4.Consider the following for Q Co.for the year 2019-20 : Cost of goods available for sale quad ₹1 00 000 Total sales Opening inventory of goods quad ₹80 000 Gross profit margin on sales Closing inventory of goods for the year 2019-20 as (a) ₹80 000 (b) ₹60 000 (e) ₹40 000?.
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