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Goods are transferred from Department X to Department Y at a price so as to
include a profit of 33.33% on cost. If the value of closing stock of Department Y is `
48,000, then the amount of stock reserve on closing stock will be?
include a profit of 33.33% on cost. If the value of closing stock of Department Y is `
48,000, then the amount of stock reserve on closing stock will be?
Most Upvoted Answer
Goods are transferred from Department X to Department Y at a price so ...
Calculation of Profit on Cost:
To calculate the profit on cost, we need to find the cost price of the goods transferred from Department X to Department Y.
Let's assume the cost price of the goods transferred from Department X to Department Y is C.
The profit on cost is given as 33.33%. This means the selling price (S) will be 133.33% of the cost price (C).
Therefore, the selling price (S) can be calculated as:
S = C + 33.33% of C
S = C + 0.3333C
S = 1.3333C
Calculation of Stock Reserve:
The value of closing stock of Department Y is given as `48,000.
Since the closing stock is unsold, it is valued at cost price. Let's assume the value of closing stock is C'.
We know that the selling price (S) is 1.3333 times the cost price (C). Therefore, the cost price (C') of the closing stock can be calculated as:
1.3333C = C'
C = C' / 1.3333
Substituting the value of C' as `48,000, we can calculate the cost price (C) as:
C = `48,000 / 1.3333
Now, to calculate the stock reserve, we need to find the difference between the cost price (C) and the value of closing stock (C').
Stock Reserve = C' - C
Putting the values in the formula:
Stock Reserve = `48,000 - (`48,000 / 1.3333)
Calculating the Stock Reserve:
Stock Reserve = `48,000 - `36,000
Final Answer:
The amount of stock reserve on closing stock is `12,000.
Explanation:
The stock reserve is calculated by finding the difference between the value of closing stock and the cost price of the goods. In this case, the profit on cost is already included in the selling price, so we need to calculate the cost price using the given information. Once we have the cost price, we can subtract it from the value of closing stock to find the stock reserve. In this scenario, the stock reserve is `12,000.
To calculate the profit on cost, we need to find the cost price of the goods transferred from Department X to Department Y.
Let's assume the cost price of the goods transferred from Department X to Department Y is C.
The profit on cost is given as 33.33%. This means the selling price (S) will be 133.33% of the cost price (C).
Therefore, the selling price (S) can be calculated as:
S = C + 33.33% of C
S = C + 0.3333C
S = 1.3333C
Calculation of Stock Reserve:
The value of closing stock of Department Y is given as `48,000.
Since the closing stock is unsold, it is valued at cost price. Let's assume the value of closing stock is C'.
We know that the selling price (S) is 1.3333 times the cost price (C). Therefore, the cost price (C') of the closing stock can be calculated as:
1.3333C = C'
C = C' / 1.3333
Substituting the value of C' as `48,000, we can calculate the cost price (C) as:
C = `48,000 / 1.3333
Now, to calculate the stock reserve, we need to find the difference between the cost price (C) and the value of closing stock (C').
Stock Reserve = C' - C
Putting the values in the formula:
Stock Reserve = `48,000 - (`48,000 / 1.3333)
Calculating the Stock Reserve:
Stock Reserve = `48,000 - `36,000
Final Answer:
The amount of stock reserve on closing stock is `12,000.
Explanation:
The stock reserve is calculated by finding the difference between the value of closing stock and the cost price of the goods. In this case, the profit on cost is already included in the selling price, so we need to calculate the cost price using the given information. Once we have the cost price, we can subtract it from the value of closing stock to find the stock reserve. In this scenario, the stock reserve is `12,000.
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Goods are transferred from Department X to Department Y at a price so as toinclude a profit of 33.33% on cost. If the value of closing stock of Department Y is `48,000, then the amount of stock reserve on closing stock will be?
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Goods are transferred from Department X to Department Y at a price so as toinclude a profit of 33.33% on cost. If the value of closing stock of Department Y is `48,000, then the amount of stock reserve on closing stock will be? 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 Goods are transferred from Department X to Department Y at a price so as toinclude a profit of 33.33% on cost. If the value of closing stock of Department Y is `48,000, then the amount of stock reserve on closing stock will be? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Goods are transferred from Department X to Department Y at a price so as toinclude a profit of 33.33% on cost. If the value of closing stock of Department Y is `48,000, then the amount of stock reserve on closing stock will be?.
Goods are transferred from Department X to Department Y at a price so as toinclude a profit of 33.33% on cost. If the value of closing stock of Department Y is `48,000, then the amount of stock reserve on closing stock will be? 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 Goods are transferred from Department X to Department Y at a price so as toinclude a profit of 33.33% on cost. If the value of closing stock of Department Y is `48,000, then the amount of stock reserve on closing stock will be? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Goods are transferred from Department X to Department Y at a price so as toinclude a profit of 33.33% on cost. If the value of closing stock of Department Y is `48,000, then the amount of stock reserve on closing stock will be?.
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