COST ACCOUNTING
INTRODUCTION TO COST ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Calculate closing stock for Bb factory if information of the stock for 2019 is as follows:Opening stock 2500Production units 20 000Sales units 21 000
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1000 unit
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1500 unit
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2000 unit
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3500 unit
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Explanation:
Detailed explanation-1: -The formula for Closing Stock = Opening Stock + Purchases – Cost of the Goods Sold.
Detailed explanation-2: -Therefore, Stock turnover ratio is 4 times.
Detailed explanation-3: -The formula for calculating closing stock is as follows: Closing stock = (Opening Stock + Inward) – Outward. or. Closing Stock = Opening Stock + Purchases – Cost of Goods Sold.
Detailed explanation-4: -22, 000 = 3, 500 + Purchases-1, 500. 22, 000 = 2, 000 + Purchases. Purchases = 22, 000-2, 000. Purchases = 20, 000.
There is 1 question to complete.