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O.Stock-34000, purchase-160000, sales- 180000. G.profit is 20% on cost. Calculate closing stock.?

Accounting Cost Accounting Costing
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Question added by Manas Tomar
Date Posted: 2017/11/05
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Saad Shahnawaz Chichkar
by Saad Shahnawaz Chichkar , Senior financial analyst , Automak automotive company

Op. stock + purchase = 34,000+160,000 = 194,000.

G. profit is 20% on cost = 20/120 = 16.6667%.

So, cost will be 100-16.6667 = 83.3334%

Sales is = 180,000

Cost of sales = 180,000 x 83.3337% = 150,000.

G. profit will be = 180,000 - 150,000 = 30,000, which is 20% of cost. 

Closing stock will be = 194,000 - 150,000 = 44,000.

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