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 What is the amount of purchase when opening stock = Rs. 3,500 closing stock = Rs. 1,500, Cost of goods sold = Rs. 22,000.

  • a)
    Rs. 20,000 

  • b)
    Rs. 24,000

  • c)
    Rs. 27,000

  • d)
    Rs. 17,000

Correct answer is option 'A'. Can you explain this answer?
Verified Answer
What is the amount of purchase when opening stock = Rs. 3,500 closing ...
  • Formula of COGS:
    • COGS = Opening inventory + Purchases - Closing inventory
    • 22,000 = 3,500 + Purchases - 1,500
    • 22,000 = 2,000 + Purchases
    • Purchases = 22,000 - 2,000
    • Purchases = 20,000
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Most Upvoted Answer
What is the amount of purchase when opening stock = Rs. 3,500 closing ...
Calculation:

- Cost of goods available for sale = Opening stock + Purchases
- Purchases = Cost of goods available for sale - Opening stock
- Purchases = Rs. 22,000 - Rs. 3,500 = Rs. 18,500
- Cost of goods sold = Purchases + Opening stock - Closing stock
- Rs. 22,000 = Rs. 18,500 + Rs. 3,500 - Rs. 1,500
- Rs. 22,000 = Rs. 20,000

Therefore, the amount of purchase when opening stock = Rs. 3,500, closing stock = Rs. 1,500, and cost of goods sold = Rs. 22,000 is Rs. 20,000.
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Community Answer
What is the amount of purchase when opening stock = Rs. 3,500 closing ...
Opening stock + purchase - closing stock= cost of goods sales..

3500 +x -1500 = 22000
x +2000 = 22000
x =22000 -2000
x= 20000
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What is the amount of purchase when opening stock = Rs. 3,500 closing stock = Rs. 1,500, Cost of goods sold = Rs. 22,000.a)Rs. 20,000b)Rs. 24,000c)Rs. 27,000d)Rs. 17,000Correct answer is option 'A'. Can you explain this answer?
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