G.P. of manufacturing unit at its first F.Y.

This query is : Resolved

pallavi gupta (Querist)
Follow

01 September 2010 hi experts,
one of my client has started his new manufacturing unit... now first balance sheet and P& L is to be audited....

the situation is GP can be calculated only after calculating Closing Stock. and Closing Stock (R.M.+Finished stock + Semi finished stock)can be calculated only after deriving Gross profit due to having some extent of G.P. in Finished and Semi Finished Stock..

i.e. G.P = Sales + Cl. Stock - op. Stock
- Production - direct expenses.

my ques. is how will it calculate it gross profit....

plz. tell me as soon as possible.

POOJA SACHDEVA

POOJA SACHDEVA (Expert)
Follow

01 September 2010 Dear Pallavi

For Calculating the Gross profit of Manufacturing Company you required following items
Add:
1. Sales
2 Closing stock
Less
1 Opening Stock
2 Direct Purchase
3 Direct Labour & Wages
4 Power & fuel
then we achieve the Gross profit

Regards''
Pooja

Message likes : 1 times

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

01 September 2010 Closing stock of R/M can be valued at Weighted AVG price or LIFO, For semi finished or finished stock, if you are maintaing the process costing system, it can be arrived correctly, the your GP will be as per Ms. Pooja sachdeva explained method

Message likes : 1 times

pallavi gupta

pallavi gupta (Querist)
Follow

05 September 2010 thanks for replying.... but still there is a problem dear....

i cant derive Closing Stock until i reduce the part of gross profit from the closing stock of finished goods and semi finished goods.....

and for calculating G. P. i need closing stock...

m i able to describe u the problem now....???

Sales
add: cl. stock of -
Raw Material
Finished Goods - GP
semi fin.- GP - % of completion

less: Op. Stock
Direct Exp.

= G . P .

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

kavita goel

avulaandcopdrl 2023

divakar podaturu

Ashok Atluri

CA Reshma prabhu

Subscribe Now

G.P. of manufacturing unit at its first F.Y.

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA