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<p>(a) <strong>$5,000</strong>, (b)<strong> $20,000</strong> (c) <strong>$15,000</strong> (d) <strong>Nil</strong>. (e) <strong>Non of these.</strong></p> <p> </p>
Answer : (A)5,000
Computation
Gross profit is33% of the cost of sales, hence Cost of sales represent the100%. Adding the gross profit of33% we get the Sales representing133%
Sales 60000 (133%)
COS 45000 (100%)
GP 15000 (33%)
COS =60,000/133% =45,000
Now that we know the Cost of Sales, we now compute the beginning stock by working back.
Beginning 5,000 (squeezed)
Purchases 49,000
Ending (9,000)
COS 45,000
answer is (a) ... Opening stock = $5000.
**Computations:
- If GP markup is33.33%, then GP margin would be33.33% /133.33% =25%
- If GP margin is25% then GP value would be $60000 x25% = $15000
- If sales is $60000 and GP is $15000, then COS would be $45000
- If COS is $45000 and Purchases minus Closing stock is $40000, then opening stock would be
$45000 minus $40000 = $5000
(a)
$5,000
The answer is (a)5000.
workings:
sales- 60000
opening stock if taken as - 5000
purchases- 49000
closing stock- (9000)
cost of sales 45000
gross profit- 15000
15000 is1/3 of cost of sales
(A)
60000 =1/3X + X
X =45000
45000 = opening stock +40000 -9000
opening stock =5000
let cp100 profit based on cp is1/3 so33.33 ,now sp is133.33,
proportion of profit to sp is25% i.e.60000*25% =15000
opening stock= sales price+closing stock-gross profit-purchases
=60000+9000-(15000+49000)
=$5000
ANSWER A
(b)$20,000
in my point of view option B IS THE CORRECT ANSWER
