Multiple choice

If COGS is Rs. 85,000, opening stock is twice more than the closing stock and purchases are Rs. 60,000, then the closing stock will be

  1. Rs. 12,500

  2. Rs. 37,500

  3. Rs. 25,000

  4. Rs. 75,000
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

COGS = opening stock + Purchases - closing stock Let closing stock = X, So opening stock = X + 2X = 3X 85,000 = 3X + 60,000 - X X = closing stock = Rs.12,500 Opening stock is thus Rs.37,500. If you wrongly assume opening stock = 2X, then closing stock = Rs.25,000 and opening stock Rs.75,000.

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