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Ascertain the cost of goods sold,gross profit,and net profit from the following figures: purchase =5,06000, opening stock=20000 return outward 6000 return inward 10000 sales 560000 freight and octroi 5000 rent 2000 carriage outward 1000 closing stock 18000?
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Ascertain the cost of goods sold,gross profit,and net profit from the ...
**Calculating Cost of Goods Sold (COGS)**
To calculate the Cost of Goods Sold (COGS), we need to consider the following components:
1. **Opening Stock**: Opening stock refers to the value of inventory available at the beginning of the accounting period. In this case, the opening stock is given as $20,000.
2. **Purchases**: Purchases refer to the cost of buying additional inventory during the accounting period. Here, the purchase value is given as $506,000.
3. **Return Outward**: Return outward refers to the goods returned by the company to its suppliers. The value of return outward is given as $6,000.
4. **Return Inward**: Return inward refers to the goods returned by customers to the company. The value of return inward is given as $10,000.
5. **Closing Stock**: Closing stock refers to the value of inventory available at the end of the accounting period. In this case, the closing stock is given as $18,000.
Now, let's calculate the COGS using the formula:
COGS = Opening Stock + Purchases - Return Outward + Return Inward - Closing Stock
COGS = $20,000 + $506,000 - $6,000 + $10,000 - $18,000
COGS = $512,000
**Calculating Gross Profit**
Gross Profit is the difference between Net Sales and the Cost of Goods Sold. To calculate Gross Profit, we need to consider the following components:
1. **Sales**: Sales refer to the total revenue generated from the sale of goods during the accounting period. Here, the sales value is given as $560,000.
2. **Freight and Octroi**: Freight and Octroi refers to the expenses incurred for transporting goods and paying duties. The value of Freight and Octroi is given as $5,000.
Now, let's calculate the Gross Profit using the formula:
Gross Profit = Sales - COGS - Freight and Octroi
Gross Profit = $560,000 - $512,000 - $5,000
Gross Profit = $43,000
**Calculating Net Profit**
Net Profit is the final profit earned by the company after deducting all expenses, including rent and carriage outward, from the Gross Profit. To calculate Net Profit, we need to consider the following components:
1. **Rent**: Rent refers to the expense incurred for using a property for business purposes. The value of rent is given as $2,000.
2. **Carriage Outward**: Carriage outward refers to the expenses incurred for delivering goods to customers. The value of carriage outward is given as $1,000.
Now, let's calculate the Net Profit using the formula:
Net Profit = Gross Profit - Rent - Carriage Outward
Net Profit = $43,000 - $2,000 - $1,000
Net Profit = $40,000
Therefore, the Cost of Goods Sold (COGS) is $512,000, the Gross Profit is $43,000, and the Net Profit is $40,000 based on the given figures and calculations.
To calculate the Cost of Goods Sold (COGS), we need to consider the following components:
1. **Opening Stock**: Opening stock refers to the value of inventory available at the beginning of the accounting period. In this case, the opening stock is given as $20,000.
2. **Purchases**: Purchases refer to the cost of buying additional inventory during the accounting period. Here, the purchase value is given as $506,000.
3. **Return Outward**: Return outward refers to the goods returned by the company to its suppliers. The value of return outward is given as $6,000.
4. **Return Inward**: Return inward refers to the goods returned by customers to the company. The value of return inward is given as $10,000.
5. **Closing Stock**: Closing stock refers to the value of inventory available at the end of the accounting period. In this case, the closing stock is given as $18,000.
Now, let's calculate the COGS using the formula:
COGS = Opening Stock + Purchases - Return Outward + Return Inward - Closing Stock
COGS = $20,000 + $506,000 - $6,000 + $10,000 - $18,000
COGS = $512,000
**Calculating Gross Profit**
Gross Profit is the difference between Net Sales and the Cost of Goods Sold. To calculate Gross Profit, we need to consider the following components:
1. **Sales**: Sales refer to the total revenue generated from the sale of goods during the accounting period. Here, the sales value is given as $560,000.
2. **Freight and Octroi**: Freight and Octroi refers to the expenses incurred for transporting goods and paying duties. The value of Freight and Octroi is given as $5,000.
Now, let's calculate the Gross Profit using the formula:
Gross Profit = Sales - COGS - Freight and Octroi
Gross Profit = $560,000 - $512,000 - $5,000
Gross Profit = $43,000
**Calculating Net Profit**
Net Profit is the final profit earned by the company after deducting all expenses, including rent and carriage outward, from the Gross Profit. To calculate Net Profit, we need to consider the following components:
1. **Rent**: Rent refers to the expense incurred for using a property for business purposes. The value of rent is given as $2,000.
2. **Carriage Outward**: Carriage outward refers to the expenses incurred for delivering goods to customers. The value of carriage outward is given as $1,000.
Now, let's calculate the Net Profit using the formula:
Net Profit = Gross Profit - Rent - Carriage Outward
Net Profit = $43,000 - $2,000 - $1,000
Net Profit = $40,000
Therefore, the Cost of Goods Sold (COGS) is $512,000, the Gross Profit is $43,000, and the Net Profit is $40,000 based on the given figures and calculations.
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Ascertain the cost of goods sold,gross profit,and net profit from the following figures: purchase =5,06000, opening stock=20000 return outward 6000 return inward 10000 sales 560000 freight and octroi 5000 rent 2000 carriage outward 1000 closing stock 18000?
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Ascertain the cost of goods sold,gross profit,and net profit from the following figures: purchase =5,06000, opening stock=20000 return outward 6000 return inward 10000 sales 560000 freight and octroi 5000 rent 2000 carriage outward 1000 closing stock 18000? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Ascertain the cost of goods sold,gross profit,and net profit from the following figures: purchase =5,06000, opening stock=20000 return outward 6000 return inward 10000 sales 560000 freight and octroi 5000 rent 2000 carriage outward 1000 closing stock 18000? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Ascertain the cost of goods sold,gross profit,and net profit from the following figures: purchase =5,06000, opening stock=20000 return outward 6000 return inward 10000 sales 560000 freight and octroi 5000 rent 2000 carriage outward 1000 closing stock 18000?.
Ascertain the cost of goods sold,gross profit,and net profit from the following figures: purchase =5,06000, opening stock=20000 return outward 6000 return inward 10000 sales 560000 freight and octroi 5000 rent 2000 carriage outward 1000 closing stock 18000? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Ascertain the cost of goods sold,gross profit,and net profit from the following figures: purchase =5,06000, opening stock=20000 return outward 6000 return inward 10000 sales 560000 freight and octroi 5000 rent 2000 carriage outward 1000 closing stock 18000? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Ascertain the cost of goods sold,gross profit,and net profit from the following figures: purchase =5,06000, opening stock=20000 return outward 6000 return inward 10000 sales 560000 freight and octroi 5000 rent 2000 carriage outward 1000 closing stock 18000?.
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