| N | |
| sales | 12,000 |
| opening stock | 3,000 |
| purchases | 7,000 |
| closing stock | 2,000 |
| wages | 500 |
| Transport | 400 |
| electricity | 300 |
From the above figures, calculate (showing all workings) the
(a) cost of goods sold.
(b) net profit percentage.
(c) rate of turnover.
(a) Cost of goods sold = opening stock + purchases - closing stock
cost of goods sold N
opening stock 3,000
purchases 7,000
10,000
Less closing stock 2,000
cost of goods sold 8,000
(b) Net profit percentage
sales 12,000
cost of goods sold 8,000
Gross profit 4,000
Less expenses;
wages 500
Transport 400
electricity 300 1,200
Net profit 2,800
Net profit percentage = Net profit * 100 / sales
2800/12000 * 100
23.33 = 23%
(c) Rate of turnover = cost of goods sold / Average stock
Average stock = opening stock + closing stock / 2
= 3000 + 2000 / 2 = 2500
cost of goods sold =
opening stock 3,000
purchases 7,000 10,000
less closing stock; 2000
cost of goods sold 8,000
Rate of turnover = 8,000 / 2500 = 3.2 time
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