Use the following information to answer questions below Trading Account of Umeh Enterprises for the year ended 31st December 2019 GH⊄ GH⊄ Opening stock 1000...
Question 1 Report
Use the following information to answer questions below
Trading Account of Umeh Enterprises for the year ended 31st December 2019
| GH⊄ | GH⊄ | ||
| Opening stock | 10000 | Sales | 200000 |
| Purchases | 120000 | Less: | (4000) |
| 130000 | 196000 | ||
| Closing stock | (22800) | ||
| Cost of goods sold | ----- | ||
| Gross profit | ------ | ||
| 196000 | 196000 |
The cost of goods sold is
Answer Details
The cost of goods sold can be calculated by subtracting the closing stock from the sum of the opening stock and purchases.
Given the information provided:
Opening stock: GH⊄ 10,000
Purchases: GH⊄ 120,000
Closing stock: GH⊄ (22,800)
To find the cost of goods sold, we add the opening stock and purchases, and then subtract the closing stock:
Cost of goods sold = Opening stock + Purchases - Closing stock
= GH⊄ 10,000 + GH⊄ 120,000 - GH⊄ (22,800)
= GH⊄ 130,000 - GH⊄ 22,800
= GH⊄ 107,200
Therefore, the cost of goods sold for the year ended 31st December 2019 is GH⊄ 107,200.
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