If sales are $ 60,000 gross profit is 1/3 of cost, purchases are $ 49,000 and closing stock is$ 9,000, then opening stock will be ?

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

Openning stock will be5000$ assuming there is no other manufacturing expenses Cogs45000+closing9000 - purchase49000 = openning stock5000$Cogs=3×60000 sales ÷4 =45000$ thanks for invite

(A)

60000 =1/3X + X

X =45000

45000 = opening stock +40000 -9000

opening stock =5000

A)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