Question

In: Accounting

Cost of goods available for sales for Sigma Company is 420050, gross profit was 25%, sales...

Cost of goods available for sales for Sigma Company is 420050, gross profit was 25%, sales 200500. What is the cost of ending finished goods inventory?

Solutions

Expert Solution

Ans-

Closing stock = (opening stock + purchase/ cost of goods sold + gross profit ) - sales

Opening stock - Nil

Cost of goods sold- 420050

Gross profit - 25% of sales ( 200500*25%)- 50125

Sales- 200500

closing stock = (420050+50125)- 200500

Closing stock= 269675


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