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P Consigned 1,00,000 lb. of oil costing `2 per lb at an invoice price of `3. He spent Re. 0.25 per lb. as freight and insurance, ` 5,480 on cartage for sending it to his agent T at Madras. On the way 500 lb. of oil was spoilt due to leakage which was very normal and common with such a consignment. T sold 90,000 lb. at `4 per lb. He spent `12,500 on advertisement and other recurring expenses5,000 lbs were destroyed in the godown and nothing is realised from the insurer.?
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P Consigned 1,00,000 lb. of oil costing `2 per lb at an invoice price ...
Calculation of Cost of Goods Sold (COGS)
To calculate the cost of goods sold (COGS), we need to consider the cost of the consignment, the freight and insurance expenses, the cartage expenses, and the loss due to leakage.
1. Cost of consignment:
Quantity of oil consigned = 100,000 lb
Cost per lb = `2
Total cost of consignment = 100,000 lb × `2 = `200,000
2. Freight and insurance expenses:
Quantity of oil consigned = 100,000 lb
Expenses per lb = Re. 0.25
Total freight and insurance expenses = 100,000 lb × Re. 0.25 = Re. 25,000
3. Cartage expenses:
Cartage expenses = `5,480
4. Loss due to leakage:
Quantity of oil lost = 500 lb
Cost per lb = `2
Total loss due to leakage = 500 lb × `2 = `1,000
Calculation of Net Sales
To calculate the net sales, we need to consider the quantity of oil sold, the selling price per lb, and the expenses incurred on advertisement and other recurring expenses.
1. Quantity of oil sold:
Quantity of oil sold = 90,000 lb
2. Selling price per lb:
Selling price per lb = `4
3. Advertisement and other recurring expenses:
Expenses incurred = `12,500
Calculation of Loss in Godown
To calculate the loss in the godown, we need to consider the quantity of oil destroyed.
1. Quantity of oil destroyed:
Quantity of oil destroyed = 5,000 lb
2. Amount realized from the insurer:
Amount realized = 0
Summary
- Cost of Goods Sold (COGS): `200,000 + Re. 25,000 + `5,480 + `1,000 = `231,480
- Net Sales: 90,000 lb × `4 = `360,000
- Loss in Godown: 5,000 lb × Cost per lb = 5,000 lb × `2 = `10,000
- Amount realized from insurer: 0
Therefore, the cost of goods sold (COGS) is `231,480, the net sales is `360,000, the loss in the godown is `10,000, and nothing is realized from the insurer.
To calculate the cost of goods sold (COGS), we need to consider the cost of the consignment, the freight and insurance expenses, the cartage expenses, and the loss due to leakage.
1. Cost of consignment:
Quantity of oil consigned = 100,000 lb
Cost per lb = `2
Total cost of consignment = 100,000 lb × `2 = `200,000
2. Freight and insurance expenses:
Quantity of oil consigned = 100,000 lb
Expenses per lb = Re. 0.25
Total freight and insurance expenses = 100,000 lb × Re. 0.25 = Re. 25,000
3. Cartage expenses:
Cartage expenses = `5,480
4. Loss due to leakage:
Quantity of oil lost = 500 lb
Cost per lb = `2
Total loss due to leakage = 500 lb × `2 = `1,000
Calculation of Net Sales
To calculate the net sales, we need to consider the quantity of oil sold, the selling price per lb, and the expenses incurred on advertisement and other recurring expenses.
1. Quantity of oil sold:
Quantity of oil sold = 90,000 lb
2. Selling price per lb:
Selling price per lb = `4
3. Advertisement and other recurring expenses:
Expenses incurred = `12,500
Calculation of Loss in Godown
To calculate the loss in the godown, we need to consider the quantity of oil destroyed.
1. Quantity of oil destroyed:
Quantity of oil destroyed = 5,000 lb
2. Amount realized from the insurer:
Amount realized = 0
Summary
- Cost of Goods Sold (COGS): `200,000 + Re. 25,000 + `5,480 + `1,000 = `231,480
- Net Sales: 90,000 lb × `4 = `360,000
- Loss in Godown: 5,000 lb × Cost per lb = 5,000 lb × `2 = `10,000
- Amount realized from insurer: 0
Therefore, the cost of goods sold (COGS) is `231,480, the net sales is `360,000, the loss in the godown is `10,000, and nothing is realized from the insurer.
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P Consigned 1,00,000 lb. of oil costing `2 per lb at an invoice price of `3. He spent Re. 0.25 per lb. as freight and insurance, ` 5,480 on cartage for sending it to his agent T at Madras. On the way 500 lb. of oil was spoilt due to leakage which was very normal and common with such a consignment. T sold 90,000 lb. at `4 per lb. He spent `12,500 on advertisement and other recurring expenses5,000 lbs were destroyed in the godown and nothing is realised from the insurer.?
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P Consigned 1,00,000 lb. of oil costing `2 per lb at an invoice price of `3. He spent Re. 0.25 per lb. as freight and insurance, ` 5,480 on cartage for sending it to his agent T at Madras. On the way 500 lb. of oil was spoilt due to leakage which was very normal and common with such a consignment. T sold 90,000 lb. at `4 per lb. He spent `12,500 on advertisement and other recurring expenses5,000 lbs were destroyed in the godown and nothing is realised from the insurer.? 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 P Consigned 1,00,000 lb. of oil costing `2 per lb at an invoice price of `3. He spent Re. 0.25 per lb. as freight and insurance, ` 5,480 on cartage for sending it to his agent T at Madras. On the way 500 lb. of oil was spoilt due to leakage which was very normal and common with such a consignment. T sold 90,000 lb. at `4 per lb. He spent `12,500 on advertisement and other recurring expenses5,000 lbs were destroyed in the godown and nothing is realised from the insurer.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for P Consigned 1,00,000 lb. of oil costing `2 per lb at an invoice price of `3. He spent Re. 0.25 per lb. as freight and insurance, ` 5,480 on cartage for sending it to his agent T at Madras. On the way 500 lb. of oil was spoilt due to leakage which was very normal and common with such a consignment. T sold 90,000 lb. at `4 per lb. He spent `12,500 on advertisement and other recurring expenses5,000 lbs were destroyed in the godown and nothing is realised from the insurer.?.
P Consigned 1,00,000 lb. of oil costing `2 per lb at an invoice price of `3. He spent Re. 0.25 per lb. as freight and insurance, ` 5,480 on cartage for sending it to his agent T at Madras. On the way 500 lb. of oil was spoilt due to leakage which was very normal and common with such a consignment. T sold 90,000 lb. at `4 per lb. He spent `12,500 on advertisement and other recurring expenses5,000 lbs were destroyed in the godown and nothing is realised from the insurer.? 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 P Consigned 1,00,000 lb. of oil costing `2 per lb at an invoice price of `3. He spent Re. 0.25 per lb. as freight and insurance, ` 5,480 on cartage for sending it to his agent T at Madras. On the way 500 lb. of oil was spoilt due to leakage which was very normal and common with such a consignment. T sold 90,000 lb. at `4 per lb. He spent `12,500 on advertisement and other recurring expenses5,000 lbs were destroyed in the godown and nothing is realised from the insurer.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for P Consigned 1,00,000 lb. of oil costing `2 per lb at an invoice price of `3. He spent Re. 0.25 per lb. as freight and insurance, ` 5,480 on cartage for sending it to his agent T at Madras. On the way 500 lb. of oil was spoilt due to leakage which was very normal and common with such a consignment. T sold 90,000 lb. at `4 per lb. He spent `12,500 on advertisement and other recurring expenses5,000 lbs were destroyed in the godown and nothing is realised from the insurer.?.
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P Consigned 1,00,000 lb. of oil costing `2 per lb at an invoice price of `3. He spent Re. 0.25 per lb. as freight and insurance, ` 5,480 on cartage for sending it to his agent T at Madras. On the way 500 lb. of oil was spoilt due to leakage which was very normal and common with such a consignment. T sold 90,000 lb. at `4 per lb. He spent `12,500 on advertisement and other recurring expenses5,000 lbs were destroyed in the godown and nothing is realised from the insurer.?, a detailed solution for P Consigned 1,00,000 lb. of oil costing `2 per lb at an invoice price of `3. He spent Re. 0.25 per lb. as freight and insurance, ` 5,480 on cartage for sending it to his agent T at Madras. On the way 500 lb. of oil was spoilt due to leakage which was very normal and common with such a consignment. T sold 90,000 lb. at `4 per lb. He spent `12,500 on advertisement and other recurring expenses5,000 lbs were destroyed in the godown and nothing is realised from the insurer.? has been provided alongside types of P Consigned 1,00,000 lb. of oil costing `2 per lb at an invoice price of `3. He spent Re. 0.25 per lb. as freight and insurance, ` 5,480 on cartage for sending it to his agent T at Madras. On the way 500 lb. of oil was spoilt due to leakage which was very normal and common with such a consignment. T sold 90,000 lb. at `4 per lb. He spent `12,500 on advertisement and other recurring expenses5,000 lbs were destroyed in the godown and nothing is realised from the insurer.? theory, EduRev gives you an
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