Given :
Indirect expenses = 15200
Direct expenses = 18,600
Sales = 1,20,000
Net Purchases = 72,000
Sales Return = 12,000
Purchase Return = 8000
Opening Stock = 16,000
Closing Stock = 28,000
To find :
Cost of Goods Sold = ?
Formulae To find Cost of Goods Sold :
• Cost of Goods Sold = Opening stock + Net Purchases + Direct expenses – Closing Stock
Solution :
Cost of Goods Sold :
Opening Stock = 16,000
Net purchases = 72,000
Direct Expenses = 18,600
Closing Stock = 28,000
= 16,000 + 72,000 + 18,600 – 28,000
= 88,000 + 18,600 – 28,000
= 1,06,600 – 28,000
= 78,600
∴ Cost of Goods Sold = 78,600
Extra Formulaes :
• Gross Profit = Net sales – Cost of Goods
Sold
• Net sales = Gross Sales – Sales Return
• Net Purchases = Gross Purchase –
Purchase Return.
