The total cost of goods available for sale with a company during the current year is ₹12,00,000 and the total sales during the period are ₹13,00,000. Gross profit margin of the company is 33 1/3 % on cost. The closing in
CS CSEET · Business Economics & Fundamentals of Accounting and Auditing · PYQS · June 2013
The total cost of goods available for sale with a company during the current year is ₹12,00,000 and the total sales during the period are ₹13,00,000. Gross profit margin of the company is 33 1/3 % on cost. The closing inventory for the current year would be —
Answer & Explanation:
Correct Answer: Option (C)
Correct answer: (C) ₹2,25,000. Cost of sales = 13,00,000/(1+1/3) = 9,75,000; closing stock = 12,00,000 − 9,75,000 = 2,25,000.
Topics: Fundamentals of Accounting
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