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The Zed company, a wholesaler, estimates the following for the month June 2006: Closing stock – Rs. 4,34,000; opening stock – Rs. 4,08,000; credit sales – Rs. 15,00,000; Cash sales – Rs. 2,00,000; Total sales – Rs. 17,00,000; Trade expenses – Rs. 15,000 Selling price is 125% of cost price. The cost of goods sold for the month of June is a. Rs. 15,20,000 b. Rs. 14,02,500 c. Rs. 12,75,000 d. Rs. 13,60,000?
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The Zed company, a wholesaler, estimates the following for the month J...
Calculation of Cost of Goods Sold (COGS)
Given data:
Closing stock – Rs. 4,34,000
Opening stock – Rs. 4,08,000
Credit sales – Rs. 15,00,000
Cash sales – Rs. 2,00,000
Trade expenses – Rs. 15,000
Selling price is 125% of cost price
COGS = Opening stock + Purchases - Closing stock
Step 1: Calculate Purchases
Total Sales = Credit Sales + Cash Sales
Total Sales = Rs. 17,00,000
Selling Price = 125% of Cost Price
Therefore, Cost Price = Selling Price/125 * 100 = 80% of Selling Price
Total Sales = Quantity Sold * Selling Price
Quantity Sold = Total Sales / Selling Price
Quantity Sold = Rs. 17,00,000 / 125 * 100 = Rs. 13,60,000
Cost of Goods Sold (COGS) = Opening stock + Purchases - Closing stock
COGS = Rs. 4,08,000 + Rs. 13,60,000 - Rs. 4,34,000
COGS = Rs. 13,34,000
Therefore, the cost of goods sold for the month of June is Rs. 13,34,000.
Conclusion
As per the given data, we have calculated the Cost of Goods Sold (COGS) for the month of June 2006. It is important to calculate the COGS as it helps in determining the gross profit for the company. The gross profit is calculated by deducting the COGS from the total sales, which in this case would be Rs. 2,66,000 (17,00,000 - 13,34,000).
Given data:
Closing stock – Rs. 4,34,000
Opening stock – Rs. 4,08,000
Credit sales – Rs. 15,00,000
Cash sales – Rs. 2,00,000
Trade expenses – Rs. 15,000
Selling price is 125% of cost price
COGS = Opening stock + Purchases - Closing stock
Step 1: Calculate Purchases
Total Sales = Credit Sales + Cash Sales
Total Sales = Rs. 17,00,000
Selling Price = 125% of Cost Price
Therefore, Cost Price = Selling Price/125 * 100 = 80% of Selling Price
Total Sales = Quantity Sold * Selling Price
Quantity Sold = Total Sales / Selling Price
Quantity Sold = Rs. 17,00,000 / 125 * 100 = Rs. 13,60,000
Cost of Goods Sold (COGS) = Opening stock + Purchases - Closing stock
COGS = Rs. 4,08,000 + Rs. 13,60,000 - Rs. 4,34,000
COGS = Rs. 13,34,000
Therefore, the cost of goods sold for the month of June is Rs. 13,34,000.
Conclusion
As per the given data, we have calculated the Cost of Goods Sold (COGS) for the month of June 2006. It is important to calculate the COGS as it helps in determining the gross profit for the company. The gross profit is calculated by deducting the COGS from the total sales, which in this case would be Rs. 2,66,000 (17,00,000 - 13,34,000).
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The Zed company, a wholesaler, estimates the following for the month June 2006: Closing stock – Rs. 4,34,000; opening stock – Rs. 4,08,000; credit sales – Rs. 15,00,000; Cash sales – Rs. 2,00,000; Total sales – Rs. 17,00,000; Trade expenses – Rs. 15,000 Selling price is 125% of cost price. The cost of goods sold for the month of June is a. Rs. 15,20,000 b. Rs. 14,02,500 c. Rs. 12,75,000 d. Rs. 13,60,000?
Question Description
The Zed company, a wholesaler, estimates the following for the month June 2006: Closing stock – Rs. 4,34,000; opening stock – Rs. 4,08,000; credit sales – Rs. 15,00,000; Cash sales – Rs. 2,00,000; Total sales – Rs. 17,00,000; Trade expenses – Rs. 15,000 Selling price is 125% of cost price. The cost of goods sold for the month of June is a. Rs. 15,20,000 b. Rs. 14,02,500 c. Rs. 12,75,000 d. Rs. 13,60,000? 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 The Zed company, a wholesaler, estimates the following for the month June 2006: Closing stock – Rs. 4,34,000; opening stock – Rs. 4,08,000; credit sales – Rs. 15,00,000; Cash sales – Rs. 2,00,000; Total sales – Rs. 17,00,000; Trade expenses – Rs. 15,000 Selling price is 125% of cost price. The cost of goods sold for the month of June is a. Rs. 15,20,000 b. Rs. 14,02,500 c. Rs. 12,75,000 d. Rs. 13,60,000? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The Zed company, a wholesaler, estimates the following for the month June 2006: Closing stock – Rs. 4,34,000; opening stock – Rs. 4,08,000; credit sales – Rs. 15,00,000; Cash sales – Rs. 2,00,000; Total sales – Rs. 17,00,000; Trade expenses – Rs. 15,000 Selling price is 125% of cost price. The cost of goods sold for the month of June is a. Rs. 15,20,000 b. Rs. 14,02,500 c. Rs. 12,75,000 d. Rs. 13,60,000?.
The Zed company, a wholesaler, estimates the following for the month June 2006: Closing stock – Rs. 4,34,000; opening stock – Rs. 4,08,000; credit sales – Rs. 15,00,000; Cash sales – Rs. 2,00,000; Total sales – Rs. 17,00,000; Trade expenses – Rs. 15,000 Selling price is 125% of cost price. The cost of goods sold for the month of June is a. Rs. 15,20,000 b. Rs. 14,02,500 c. Rs. 12,75,000 d. Rs. 13,60,000? 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 The Zed company, a wholesaler, estimates the following for the month June 2006: Closing stock – Rs. 4,34,000; opening stock – Rs. 4,08,000; credit sales – Rs. 15,00,000; Cash sales – Rs. 2,00,000; Total sales – Rs. 17,00,000; Trade expenses – Rs. 15,000 Selling price is 125% of cost price. The cost of goods sold for the month of June is a. Rs. 15,20,000 b. Rs. 14,02,500 c. Rs. 12,75,000 d. Rs. 13,60,000? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The Zed company, a wholesaler, estimates the following for the month June 2006: Closing stock – Rs. 4,34,000; opening stock – Rs. 4,08,000; credit sales – Rs. 15,00,000; Cash sales – Rs. 2,00,000; Total sales – Rs. 17,00,000; Trade expenses – Rs. 15,000 Selling price is 125% of cost price. The cost of goods sold for the month of June is a. Rs. 15,20,000 b. Rs. 14,02,500 c. Rs. 12,75,000 d. Rs. 13,60,000?.
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Here you can find the meaning of The Zed company, a wholesaler, estimates the following for the month June 2006: Closing stock – Rs. 4,34,000; opening stock – Rs. 4,08,000; credit sales – Rs. 15,00,000; Cash sales – Rs. 2,00,000; Total sales – Rs. 17,00,000; Trade expenses – Rs. 15,000 Selling price is 125% of cost price. The cost of goods sold for the month of June is a. Rs. 15,20,000 b. Rs. 14,02,500 c. Rs. 12,75,000 d. Rs. 13,60,000? defined & explained in the simplest way possible. Besides giving the explanation of
The Zed company, a wholesaler, estimates the following for the month June 2006: Closing stock – Rs. 4,34,000; opening stock – Rs. 4,08,000; credit sales – Rs. 15,00,000; Cash sales – Rs. 2,00,000; Total sales – Rs. 17,00,000; Trade expenses – Rs. 15,000 Selling price is 125% of cost price. The cost of goods sold for the month of June is a. Rs. 15,20,000 b. Rs. 14,02,500 c. Rs. 12,75,000 d. Rs. 13,60,000?, a detailed solution for The Zed company, a wholesaler, estimates the following for the month June 2006: Closing stock – Rs. 4,34,000; opening stock – Rs. 4,08,000; credit sales – Rs. 15,00,000; Cash sales – Rs. 2,00,000; Total sales – Rs. 17,00,000; Trade expenses – Rs. 15,000 Selling price is 125% of cost price. The cost of goods sold for the month of June is a. Rs. 15,20,000 b. Rs. 14,02,500 c. Rs. 12,75,000 d. Rs. 13,60,000? has been provided alongside types of The Zed company, a wholesaler, estimates the following for the month June 2006: Closing stock – Rs. 4,34,000; opening stock – Rs. 4,08,000; credit sales – Rs. 15,00,000; Cash sales – Rs. 2,00,000; Total sales – Rs. 17,00,000; Trade expenses – Rs. 15,000 Selling price is 125% of cost price. The cost of goods sold for the month of June is a. Rs. 15,20,000 b. Rs. 14,02,500 c. Rs. 12,75,000 d. Rs. 13,60,000? theory, EduRev gives you an
ample number of questions to practice The Zed company, a wholesaler, estimates the following for the month June 2006: Closing stock – Rs. 4,34,000; opening stock – Rs. 4,08,000; credit sales – Rs. 15,00,000; Cash sales – Rs. 2,00,000; Total sales – Rs. 17,00,000; Trade expenses – Rs. 15,000 Selling price is 125% of cost price. The cost of goods sold for the month of June is a. Rs. 15,20,000 b. Rs. 14,02,500 c. Rs. 12,75,000 d. Rs. 13,60,000? tests, examples and also practice CA Foundation tests.
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