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Calculate the value of closing stock from the following Opening stock 60000 Purchases 90000 Sales 120000 Gross profit on cost 33 1/3% Due to fire, stock costing 15000 was destroyed and insurance claim was accepted for 5000?
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Calculate the value of closing stock from the following Opening stock ...
Calculation of Closing Stock:
To calculate the value of closing stock, we need to consider the opening stock, purchases, sales, gross profit on cost, and any stock losses or gains due to unforeseen events.
Given Data:
- Opening stock: 60,000
- Purchases: 90,000
- Sales: 120,000
- Gross profit on cost: 33 1/3%
- Stock loss due to fire: 15,000
- Insurance claim accepted: 5,000
Step 1: Calculate the Cost of Goods Sold (COGS)
The Cost of Goods Sold (COGS) can be calculated by subtracting the closing stock from the sum of opening stock and purchases.
COGS = Opening Stock + Purchases - Closing Stock
Since we don't have the closing stock value, we need to calculate it using the given data.
COGS = 60,000 + 90,000 - Closing Stock
Step 2: Calculate the Gross Profit
The Gross Profit can be calculated by subtracting the COGS from the sales.
Gross Profit = Sales - COGS
Given that the Gross Profit on cost is 33 1/3%, we can calculate the Gross Profit as:
Gross Profit = (33 1/3 / 100) * COGS
Step 3: Calculate the Cost of Goods Available for Sale
The Cost of Goods Available for Sale is the sum of opening stock and purchases.
Cost of Goods Available for Sale = Opening Stock + Purchases
Step 4: Calculate the Closing Stock
To calculate the closing stock, we need to consider the stock loss due to fire and the insurance claim accepted.
Closing Stock = Cost of Goods Available for Sale - COGS - Stock Loss + Insurance Claim
Closing Stock = 60,000 + 90,000 - COGS - 15,000 + 5,000
Step 5: Substitute the values to calculate Closing Stock
Substituting the values, we get:
Closing Stock = 60,000 + 90,000 - (33 1/3 / 100) * COGS - 15,000 + 5,000
Simplifying the equation, we can find the value of COGS:
(33 1/3 / 100) * COGS = 120,000 - (60,000 + 90,000) + 15,000 - 5,000
(33 1/3 / 100) * COGS = 120,000 - 165,000 + 15,000 - 5,000
(33 1/3 / 100) * COGS = -35,000
COGS = (-35,000 * 100) / 33 1/3
COGS = -105,000
Since the calculated COGS is negative, it indicates an error in the data provided. Please recheck the given values to ensure accuracy.
To calculate the value of closing stock, we need to consider the opening stock, purchases, sales, gross profit on cost, and any stock losses or gains due to unforeseen events.
Given Data:
- Opening stock: 60,000
- Purchases: 90,000
- Sales: 120,000
- Gross profit on cost: 33 1/3%
- Stock loss due to fire: 15,000
- Insurance claim accepted: 5,000
Step 1: Calculate the Cost of Goods Sold (COGS)
The Cost of Goods Sold (COGS) can be calculated by subtracting the closing stock from the sum of opening stock and purchases.
COGS = Opening Stock + Purchases - Closing Stock
Since we don't have the closing stock value, we need to calculate it using the given data.
COGS = 60,000 + 90,000 - Closing Stock
Step 2: Calculate the Gross Profit
The Gross Profit can be calculated by subtracting the COGS from the sales.
Gross Profit = Sales - COGS
Given that the Gross Profit on cost is 33 1/3%, we can calculate the Gross Profit as:
Gross Profit = (33 1/3 / 100) * COGS
Step 3: Calculate the Cost of Goods Available for Sale
The Cost of Goods Available for Sale is the sum of opening stock and purchases.
Cost of Goods Available for Sale = Opening Stock + Purchases
Step 4: Calculate the Closing Stock
To calculate the closing stock, we need to consider the stock loss due to fire and the insurance claim accepted.
Closing Stock = Cost of Goods Available for Sale - COGS - Stock Loss + Insurance Claim
Closing Stock = 60,000 + 90,000 - COGS - 15,000 + 5,000
Step 5: Substitute the values to calculate Closing Stock
Substituting the values, we get:
Closing Stock = 60,000 + 90,000 - (33 1/3 / 100) * COGS - 15,000 + 5,000
Simplifying the equation, we can find the value of COGS:
(33 1/3 / 100) * COGS = 120,000 - (60,000 + 90,000) + 15,000 - 5,000
(33 1/3 / 100) * COGS = 120,000 - 165,000 + 15,000 - 5,000
(33 1/3 / 100) * COGS = -35,000
COGS = (-35,000 * 100) / 33 1/3
COGS = -105,000
Since the calculated COGS is negative, it indicates an error in the data provided. Please recheck the given values to ensure accuracy.
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Calculate the value of closing stock from the following Opening stock 60000 Purchases 90000 Sales 120000 Gross profit on cost 33 1/3% Due to fire, stock costing 15000 was destroyed and insurance claim was accepted for 5000?
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Calculate the value of closing stock from the following Opening stock 60000 Purchases 90000 Sales 120000 Gross profit on cost 33 1/3% Due to fire, stock costing 15000 was destroyed and insurance claim was accepted for 5000? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Calculate the value of closing stock from the following Opening stock 60000 Purchases 90000 Sales 120000 Gross profit on cost 33 1/3% Due to fire, stock costing 15000 was destroyed and insurance claim was accepted for 5000? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Calculate the value of closing stock from the following Opening stock 60000 Purchases 90000 Sales 120000 Gross profit on cost 33 1/3% Due to fire, stock costing 15000 was destroyed and insurance claim was accepted for 5000?.
Calculate the value of closing stock from the following Opening stock 60000 Purchases 90000 Sales 120000 Gross profit on cost 33 1/3% Due to fire, stock costing 15000 was destroyed and insurance claim was accepted for 5000? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Calculate the value of closing stock from the following Opening stock 60000 Purchases 90000 Sales 120000 Gross profit on cost 33 1/3% Due to fire, stock costing 15000 was destroyed and insurance claim was accepted for 5000? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Calculate the value of closing stock from the following Opening stock 60000 Purchases 90000 Sales 120000 Gross profit on cost 33 1/3% Due to fire, stock costing 15000 was destroyed and insurance claim was accepted for 5000?.
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