Multiple choice

Calculate COGS from the data: Net profit = Rs.1,05,000, carriage inward = Rs. 15,000, carriage outward = Rs. 5,000, opening stock = Rs.25,000, closing stock = double of opening stock and G.P. = 20% of net purchases

  1. Rs. 5,15,000

  2. Rs. 5,40,000

  3. Rs. 12,000

  4. Rs. 5,02,500
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Net profit = Rs. 1,05,000, carriage outward = Rs. 5,000 Thus, G.P. = Rs. 1,10,000 Net purchases = 1,10,000 * 100/20 = Rs. 5,50,000. COGS = Opening stock + Net purchases + Direct expenses - Closing stock             = 25,000 + 5,50,000 + 15,000 - 50,000 = Rs. 5,40,000

Keep practicing — related questions