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Opening stock 13,500, Purchase 82,500, Sales 1,20,000 and stock salvaged 1,260, therate of gross profit 50% on cost then the stock destroyed by fire will be:?
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Opening stock 13,500, Purchase 82,500, Sales 1,20,000 and stock salvag...
Calculation of Cost of Goods Sold (COGS)
- COGS = Opening Stock + Purchase - Stock Salvaged
- COGS = 13,500 + 82,500 - 1,260
- COGS = 94,740
Calculation of Gross Profit
- Gross Profit = Sales - COGS
- Gross Profit = 1,20,000 - 94,740
- Gross Profit = 25,260
Calculation of Cost of Stock Destroyed
- Cost of Stock Destroyed = Gross Profit / Gross Profit Ratio
- Gross Profit Ratio = Gross Profit / Sales
- Gross Profit Ratio = 25,260 / 1,20,000
- Gross Profit Ratio = 0.21
- Cost of Stock Destroyed = 25,260 / 0.5
- Cost of Stock Destroyed = 50,520
Explanation:
- The question provides information about opening stock, purchase, sales, and stock salvaged.
- We first calculate the COGS by adding opening stock and purchase and subtracting stock salvaged from it.
- Gross profit is calculated by subtracting COGS from sales.
- We then calculate the Gross Profit Ratio by dividing Gross Profit by Sales.
- Cost of stock destroyed is calculated by dividing Gross Profit by Gross Profit Ratio.
- The cost of stock destroyed is estimated to be 50,520, which is half of the Gross Profit earned.
- This calculation assumes that the Gross Profit Ratio remains constant throughout the period and there are no other expenses involved.
- In reality, the cost of stock destroyed could be higher or lower depending on various factors.
- COGS = Opening Stock + Purchase - Stock Salvaged
- COGS = 13,500 + 82,500 - 1,260
- COGS = 94,740
Calculation of Gross Profit
- Gross Profit = Sales - COGS
- Gross Profit = 1,20,000 - 94,740
- Gross Profit = 25,260
Calculation of Cost of Stock Destroyed
- Cost of Stock Destroyed = Gross Profit / Gross Profit Ratio
- Gross Profit Ratio = Gross Profit / Sales
- Gross Profit Ratio = 25,260 / 1,20,000
- Gross Profit Ratio = 0.21
- Cost of Stock Destroyed = 25,260 / 0.5
- Cost of Stock Destroyed = 50,520
Explanation:
- The question provides information about opening stock, purchase, sales, and stock salvaged.
- We first calculate the COGS by adding opening stock and purchase and subtracting stock salvaged from it.
- Gross profit is calculated by subtracting COGS from sales.
- We then calculate the Gross Profit Ratio by dividing Gross Profit by Sales.
- Cost of stock destroyed is calculated by dividing Gross Profit by Gross Profit Ratio.
- The cost of stock destroyed is estimated to be 50,520, which is half of the Gross Profit earned.
- This calculation assumes that the Gross Profit Ratio remains constant throughout the period and there are no other expenses involved.
- In reality, the cost of stock destroyed could be higher or lower depending on various factors.
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Opening stock 13,500, Purchase 82,500, Sales 1,20,000 and stock salvaged 1,260, therate of gross profit 50% on cost then the stock destroyed by fire will be:?
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Opening stock 13,500, Purchase 82,500, Sales 1,20,000 and stock salvaged 1,260, therate of gross profit 50% on cost then the stock destroyed by fire will be:? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Opening stock 13,500, Purchase 82,500, Sales 1,20,000 and stock salvaged 1,260, therate of gross profit 50% on cost then the stock destroyed by fire will be:? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Opening stock 13,500, Purchase 82,500, Sales 1,20,000 and stock salvaged 1,260, therate of gross profit 50% on cost then the stock destroyed by fire will be:?.
Opening stock 13,500, Purchase 82,500, Sales 1,20,000 and stock salvaged 1,260, therate of gross profit 50% on cost then the stock destroyed by fire will be:? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Opening stock 13,500, Purchase 82,500, Sales 1,20,000 and stock salvaged 1,260, therate of gross profit 50% on cost then the stock destroyed by fire will be:? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Opening stock 13,500, Purchase 82,500, Sales 1,20,000 and stock salvaged 1,260, therate of gross profit 50% on cost then the stock destroyed by fire will be:?.
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