The following information relates to Raisa's grocery store as of 31st December 2018. Stock -1st...
COMMERCE
WAEC 2020
The following information relates to Raisa's grocery store as of 31st December 2018.
| Stock -1st January 2018 | 20,000 |
| Purchases | 150,000 |
| Sales | 230,000 |
| Carriage inwards | 4,000 |
| Rent received | 80,000 |
| Salaries | 29,000 |
| Stock -31st December 2018 |
You are required to calculate:
(a) cost of goods sold
(b) gross profit
(c) net profit
(d) percentage of gross profit
Explanation
| opening account ------------- 20,000 | sales ------------------230,000 |
| Add purchases -------------- 150,000 | |
| 170,000 | |
| Add carriage inwards------- 4,000 | |
| cost of goods available-----174,000 | |
| Less closing stock----------- 35,000 | |
| cost of goods sold(wk1)----139,000 | |
| Gross profit(wk2)------------- 91,000 | |
| 230,000 | 230,000 |
| EXPENDITURE | Gross profit b/d--------- 91,000 |
| Salaries----------------------- 29,000 | |
| Net profit c/d(wk3)--------- 62,000 | |
| 91,000 | 91,000 |
| Net profit b/d ----------- 62,000 |
Workings:
i. Cost of goods sold = 139,000
ii. Gross profit = 91,000
iii. Net profit 62,000
iv. percentage of gross profit = \(\frac{\text{gross profit}}{sales}\) x 100%
= \(\frac{91,000}{230,000} \times \frac{100}{1}\)
= 39.57%
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