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If sales are Rs 2000 and the rate of gross profit on cost of goods sold is 25%, then the cost of goods sold will be. A) 2100 B) 1500 C) 1600 D) 2000 ANSWER IS C . PLEASE EXPLAIN ME ANYONE?
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If sales are Rs 2000 and the rate of gross profit on cost of goods sol...
Calculation of Cost of Goods Sold
To calculate the cost of goods sold (COGS), we need to use the formula:
COGS = Sales - Gross Profit
Given that the sales are Rs 2000 and the rate of gross profit on cost of goods sold is 25%, we can calculate the gross profit as follows:
Gross Profit = 25% of Cost of Goods Sold
Gross Profit = 0.25 x Cost of Goods Sold
Substituting this value in the formula for COGS, we get:
COGS = Sales - 0.25 x Cost of Goods Sold
Solving for COGS, we get:
COGS = (Sales / 1.25)
Substituting the given values, we get:
COGS = (2000 / 1.25)
COGS = 1600
Therefore, the cost of goods sold is Rs 1600.
Conclusion
The cost of goods sold can be calculated using the formula COGS = Sales - Gross Profit. In this case, the gross profit was calculated as 25% of the cost of goods sold. Using these values, we could calculate the cost of goods sold as Rs 1600.
To calculate the cost of goods sold (COGS), we need to use the formula:
COGS = Sales - Gross Profit
Given that the sales are Rs 2000 and the rate of gross profit on cost of goods sold is 25%, we can calculate the gross profit as follows:
Gross Profit = 25% of Cost of Goods Sold
Gross Profit = 0.25 x Cost of Goods Sold
Substituting this value in the formula for COGS, we get:
COGS = Sales - 0.25 x Cost of Goods Sold
Solving for COGS, we get:
COGS = (Sales / 1.25)
Substituting the given values, we get:
COGS = (2000 / 1.25)
COGS = 1600
Therefore, the cost of goods sold is Rs 1600.
Conclusion
The cost of goods sold can be calculated using the formula COGS = Sales - Gross Profit. In this case, the gross profit was calculated as 25% of the cost of goods sold. Using these values, we could calculate the cost of goods sold as Rs 1600.
Community Answer
If sales are Rs 2000 and the rate of gross profit on cost of goods sol...
Use this trick for this kind of question. 1/3 of cost = 1/4 of sales. 1/4 cost = 1/5 of sales. and so on. profit= 1/4 ( GP =25%) on cost = 1/5 on sales > 1/4 on cost = 1/5 × 2000 > 1/4 cost = 400 > cost = 400 × 4 > cost = 1600
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If sales are Rs 2000 and the rate of gross profit on cost of goods sold is 25%, then the cost of goods sold will be. A) 2100 B) 1500 C) 1600 D) 2000 ANSWER IS C . PLEASE EXPLAIN ME ANYONE?
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If sales are Rs 2000 and the rate of gross profit on cost of goods sold is 25%, then the cost of goods sold will be. A) 2100 B) 1500 C) 1600 D) 2000 ANSWER IS C . PLEASE EXPLAIN ME ANYONE? 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 If sales are Rs 2000 and the rate of gross profit on cost of goods sold is 25%, then the cost of goods sold will be. A) 2100 B) 1500 C) 1600 D) 2000 ANSWER IS C . PLEASE EXPLAIN ME ANYONE? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If sales are Rs 2000 and the rate of gross profit on cost of goods sold is 25%, then the cost of goods sold will be. A) 2100 B) 1500 C) 1600 D) 2000 ANSWER IS C . PLEASE EXPLAIN ME ANYONE?.
If sales are Rs 2000 and the rate of gross profit on cost of goods sold is 25%, then the cost of goods sold will be. A) 2100 B) 1500 C) 1600 D) 2000 ANSWER IS C . PLEASE EXPLAIN ME ANYONE? 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 If sales are Rs 2000 and the rate of gross profit on cost of goods sold is 25%, then the cost of goods sold will be. A) 2100 B) 1500 C) 1600 D) 2000 ANSWER IS C . PLEASE EXPLAIN ME ANYONE? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If sales are Rs 2000 and the rate of gross profit on cost of goods sold is 25%, then the cost of goods sold will be. A) 2100 B) 1500 C) 1600 D) 2000 ANSWER IS C . PLEASE EXPLAIN ME ANYONE?.
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