Sona Ltd. has three departments -P,Q and R. From the following particulars given below, compute Departmental results:
stock as on 1-1-2017: P 30000
Q 45000
R 15000
Purchases: P 160000
Q 130000
R 60000
Actual sales: P 188000
Q166000
R 93000
Gross profit on normal sales price: P 25%
R 33.33%
Q 40%
During the year 2017 some items were sold at discount and these discounts were reflected in the above sales value. The details are given below:
sales at normal price: P 15000
Q 8000
R 6000
sales at actual price: P 11000
Q 6000
R 4000
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Departmental Accounts
Replies (6)
Quick Summary
Sales revenue/ gross profit= % margin.
so calculate profit like below
Sales revenue
-Cogm
= gross profit
(cogm or cos = opening stock+ purchases)
the question does not address what to do, so assuming that one needs to find out what is the profit margin on actual price (normal price isn’t already analysed above), substitute sales revenue by actual price data for P,Q,R individually. All the best.
Thank you
Sry, the gross profit margin formula= gross profit/ sales revenue. If it doesn’t work out, then try this formula
(sales revenue - cogm)/sales revenue for this problem.
But there is no closing stock
Sry, not worry, what will we do when all the inventory is sold off? Sometimes, we see out of stock, and we can assume that here! Both the above formulae mean the same, it’s just that you need to calculate the margin for actual sales.
Thank you for helping I'll try.
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