The following information relates to kipture traders for the year 2016
Turn over sh 270,000
Margin 40%
Rate of turnover 6 times
Expenses sh 40,000
From the following information above, calculate;
i)Gross profit
ii) cost of goods sold
iv)Average stock
Answer:
i)Gross profit
Margin=gross profit/net sales
40%=GP/270,000
Margin=2/5=GP/270,000
GP=2X270,000/5
=sh. 108,000
ii) cost of goods sold
Gross profit(GP)=sales- cost of goods sold
Cost of sales=sales
Margin=gross profit/net sales
40%=GP/270,000
Margin=2/5=GP/270,000
GP=2X270,000/5
=sh. 108,000
ii) cost of goods sold
Gross profit(GP)=sales- cost of goods sold
Cost of sales=sales
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