Department K Y
Opening stock #2,500 #800
Purchases #120,000 #100,000
Sales #180,000 #200,000
Salaries #8,000 #30,000
Closing stock #3,000 #1,500
Rate expenses of #1,500 are apportioned in the ratio 1:2.
The gross profit for K is
-
A.
#23,500 -
B.
#60,500 -
C.
#60,700 -
D.
#82,500
Correct Answer: Option B
Explanation
Sales – Cost of Goods Sold = Gross Profit.
cost of goods sold = opening stock + purchases – closing stock
COGS= 2500 + 120000 – 3000 = 119,500
180,000 – 119,500 = 60,500