Opening Inventory + Purchases + Carriage Inwards - Closing Inventory =

Cost of Sales

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Gross Profit

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Gross Loss

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Cost of Inventory

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Solution

The correct option is A Cost of Sales
Cost of Sales = Opening Inventory + Purchases + Carriage Inwards - Closing Inventory

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Similar questions

Q. From the following information, calculate Inventory Turnover Ratio; Operating Ratio and Working Capital Turnover Ratio:
Opening Inventory ₹ 28,000; Closing Inventory ₹ 22,000; Purchases ₹ 46,000; Revenue from Operations, i.e., Net Sales ₹ 80,000; Return ₹10,000; Carriage Inwards ₹ 4,000; Office Expenses ₹ 4,000; Selling and Distribution Expenses ₹ 2,000; Working Capital ₹ 40,000.

Calculate Return on Investment Ratio and Investment Ratio and Inventory Turnover Ratio from the figures given below :

$\begin{matrix} Rs. Opening Inventory & 30, 000 Closing Inventory & 40, 000 Carriage Inwards & 10, 000 Purchases & 1, 00, 000 Current Assets & 50, 000 Current Liabilities & 20, 000 Non Current Assets & 80, 000 Indirect Expenses & 15, 000 Revenue from Operations & 2, 00, 000 \end{matrix}$

From the following Statement of Profit and Loss for the year ended 31st March, 2019 of Rex Ltd., calculate Inventory Turnover Ratio:

STATEMENT OF PROFIT AND LOSS for the year ended 31st March, 2019
Particulars ulars	Note No.	Amount (₹)
I. Revenue from Operations (Net Sales)		6,00,000
II. Expenses:
(a) Purchases of Stock-in-Trade		3,00,000
(b) Change in Inventory of Stock-in-Trade	1	50,000
(c) Employees Benefit Expenses		60,000
(d) Other Expenses	2	45,000
Total ExpensesTotal Expenses		4,55,000
III. Profit before Tax (I-II)		1,45,000
IV. Less: Tax		45,000
V. Profit after Tax (III-IV)		1,00,000

Notes to Accounts

Particulars	Amount (₹)
I. Change in Inventory of stock-in-Trade
Opening Inventory	1,25,000
Less: Closing Inventory	75,000
	50,000
2. Other Expenses
Carriage Inwards	15,000
Miscellaneous Expenses	30,000
	45,000

Q. Opening Inventory ₹80,000; Purchases ₹4,30,900; Direct Expenses ₹4,000; Closing Inventory ₹1,60,000; Administrative Expenses ₹21,100; Selling and Distribution Expenses ₹40,000; Revenue from Operations, i.e., Net Sales ₹10,00,000. Calculate Inventory Turnover Ratio; Gross Profit Ratio; and Opening Ratio.

Opening inventory + Net purchases =

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Opening Inventory + Purchases + Carriage Inwards - Closing Inventory =

The correct option is A Cost of SalesCost of Sales = Opening Inventory + Purchases + Carriage Inwards - Closing Inventory

The correct option is A Cost of Sales
Cost of Sales = Opening Inventory + Purchases + Carriage Inwards - Closing Inventory