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Net sales 900000 Gross profit 20% on cost Calculate the cost of goods and grosd profit Full solved ansr?
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Net sales 900000 Gross profit 20% on cost Calculate the cost of goods ...
Calculation of Cost of Goods and Gross Profit
Given Information:
- Net Sales: $900,000
- Gross Profit: 20%
Finding Cost of Goods:
Cost of goods sold (COGS) is the cost incurred by a business to produce the goods or services that were sold during a particular period. It includes the cost of raw materials, direct labor, and manufacturing overhead. The formula to calculate COGS is:
COGS = Beginning Inventory + Purchases - Ending Inventory
However, we do not have this information in the given question. Therefore, we can use the gross profit margin to calculate the cost of goods. The formula to calculate the cost of goods is:
Cost of Goods = Net Sales - Gross Profit
Substituting the given values, we get:
Cost of Goods = $900,000 - (20% x $900,000) = $900,000 - $180,000
Cost of Goods = $720,000
Finding Gross Profit:
Gross profit is the difference between the net sales and the cost of goods sold. It represents the amount of money that a business earns after deducting the cost of producing the goods or services. The formula to calculate gross profit is:
Gross Profit = Net Sales - Cost of Goods
Substituting the given values, we get:
Gross Profit = $900,000 - $720,000 = $180,000
Conclusion:
The cost of goods sold is $720,000, and the gross profit is $180,000.
Community Answer
Net sales 900000 Gross profit 20% on cost Calculate the cost of goods ...
Net sales(RFO)= 900000 Let cost of goods sold(COGS)=x rupess Then Gross profit (GP) =20% of x And we know that CRFO = RFO - GP .
So CRFO + GP = RFO
x+20% of x = 900000
x + 1÷5 x= 900000
6x÷5=900000
6x=4500000
x=750000
COGS= 750000 GP=150000
So CRFO + GP = RFO
x+20% of x = 900000
x + 1÷5 x= 900000
6x÷5=900000
6x=4500000
x=750000
COGS= 750000 GP=150000
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Net sales 900000 Gross profit 20% on cost Calculate the cost of goods and grosd profit Full solved ansr?
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Net sales 900000 Gross profit 20% on cost Calculate the cost of goods and grosd profit Full solved ansr? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Net sales 900000 Gross profit 20% on cost Calculate the cost of goods and grosd profit Full solved ansr? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Net sales 900000 Gross profit 20% on cost Calculate the cost of goods and grosd profit Full solved ansr?.
Net sales 900000 Gross profit 20% on cost Calculate the cost of goods and grosd profit Full solved ansr? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Net sales 900000 Gross profit 20% on cost Calculate the cost of goods and grosd profit Full solved ansr? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Net sales 900000 Gross profit 20% on cost Calculate the cost of goods and grosd profit Full solved ansr?.
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