Unit 9

Workbook
CGS # 9.1: Test your understanding
1. Ascertain Cost of Goods Sold from the following figures:
Opening Inventory / Stock Rs. 3,700
Purchases 20,00
!"osing Inventory / Stock 2,#00
CGS = OI + P - CI
2. Ascertain Cost of Goods Sold from the following figures:
Opening Stock Rs. ,#00
Purchases 30,700
$irect %&penses ',00
Indirect %&penses #,200
!"osing Inventory (,000
CGS = OS + P + DE - CI
3. Ascertain Purchases from the following figures:
!ost o) *oods So"d Rs. 0,700
Opening Stock #,00
!"osing Stock +,000
Purchases = CGS OS + CS
4. Calculate Gross Profit from the following figures:
!ost o) *oods So"d Rs. 70,00
Sa"es ,30,200
GP = Sales - CGS
5. Ascertain Gross Profit from the following figures:
Opening Inventory Rs. #,#70
Purchases ,3,,+
Sa"es ,#,2'
Purchase Return 3(0
Return In-ard #2'
!"osing Stock ,0
GP = Net Sales + CS OI Net Purchases
6. From the following information extract Gross Profit and Net Profit:
.eginning Inventory Rs. 2,'00 !arriage in Rs. #2'
Purchases ,#,20# /ages 2,00
Sa"es 20,+0 /ages Outstanding (+
Return Out-ard ,# 0oss 1y )ire ,,000
Return In-ard +0 Indirect %&penses 200
!"osing Inventory 3,'0
GP = Net Sales + CI BI Net Purchase - Direct Expenses
NP = GP Indirect (other than Direct Expenses
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Unit 9
Workbook
CGS # 9.2: Test your understanding
1. Ascertan Cost o! Goods Sold !ro" t#e !ollo$n% !%&res:
Opening Stock Rs. ,#,000
Purchases #,000
!"osing Stock 7,000
Cost of Goods Sold
2. Ascertan Gross 'ro!t ( )oss !or" t#e !ollo$n% !%&res:
Opening Inventory Rs. ,2,000
2et Purchases 7,#00
Sa"es ,',000
!"osing Stock ,,#00
Return In-ard 2,#00
Gross Loss
3. Ascertan '&rc#ases !ro" t#e !ollo$n% !%&res:
!ost o) Sa"es Rs. (0,000
.eginning Inventory ,#,000
%nding Inventory 7,000
Purchases
4. *ro" t#e !ollo$n% n!or"aton e+tract Gross 'ro!t and ,et 'ro!t:
Opening Inventory Rs. 3,000
Purchases ,',000
Sa"es 22,000
!"osing Inventory #,#00
Sa"es Return ,,#00
/ages and Sa"aries #00
3inancia" !harges ,,#00
!arriage In-ard ,#0
Sa"aries Outstanding '00
!arriage Out-ard ,00
Gross Profit
Net Profit
CGS # 9.3: Test your understanding
1. Ascertan Cost o! Goods Sold !ro" t#e !ollo$n% !%&res:
Opening Stock Rs. ,7,000
Purchases ',000
!"osing Stock 2,#00
Cost of Goods Sold
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Unit 9
Workbook
2. Ascertan Gross 'ro!t ( )oss !or" t#e !ollo$n% !%&res:
Opening Inventory Rs. ,000
2et Purchases (,#00
Sa"es 27,000
!"osing Stock #,000
Return In-ard ',#00
Gross Profit
3. Ascertan '&rc#ases !ro" t#e !ollo$n% !%&res:
!ost o) Sa"es Rs. ,,0,000
.eginning Inventory '#,000
%nding Inventory 2+,000
Purchases
4. *ro" t#e !ollo$n% n!or"aton e+tract Gross 'ro!t and ,et 'ro!t:
Opening Inventory Rs. #,#00
Purchases 7,000
Sa"es 33,000
!"osing Inventory 7,#00
Sa"es Return 2,000
/ages and Sa"aries ,,#00
3inancia" !harges 2,#00
!arriage In-ard ,#0
/ages Outstanding '00
!arriage Out-ard ,00
Gross Profit
Net Profit
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Unit 9
Workbook
CGS # 9.4: The )o""o-ing are the )igures re"ating to the 444 !o55odity Production )or the 5onth o) 6arch, 20,0.
Descrition Amount Descrition Amount
Stock on ,.03.20,07 Ra- 6ateria" Rs. 7#,000 Stock on 3,.03.20,07 Ra- 6ateria" Rs. #0,000
3actory overheads ,000 Sa"es 270,000
Purchases o) Ra- 6ateria" ,00,000 /ages on Purchases #,000
Stock on ,.03.20,07 3inished *oods ',000 Stock on 3,.03.20,07 3inished *oods 2#,000
$irect 0a1or ,2,000 O))ice 8 9d5in Overhead 3,000
Return in-ard ,0,000 6arketing %&penses ,#,000
/ork in process on ,.03.20,0 #,000 /ork in process on 3,.03.20,0 3,000
Requirement: Prepare state5ent sho-ing Pri5e !ost: !onversion !ost: Tota" !ost: !ost o) *oods 6anu)actured:
!ost o) *oods So"d. !a"cu"ate *ross Pro)it: 2et Pro)it and per unit cost 1y assu5ing that 3,000 units -ere produced during
6arch.
YYY Commodity Production
Cost of Goods Sold Statement
&or the 'onth ended (arch) *+,+
Gross Profit !
Net Profit !
Per Unit Cost !
Con"ersion Cost ;
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Unit 9
Workbook
CGS # 9.5: These data re"ate to <akar !o.=s >u"y 200( operations?
6ateria"s, .eginning @@@@@@..@@ Rs. 7,000 6ateria"s, %nding @@@@@@..@@@ Rs. (,000
/IP, .eginning @@@@@@@@@@@. 7,#00 /IP, %nding @@@@@@@@@@@@. 3,#00
3inished goods, .eginning @@@@@@@ ,0,000 3inished goods, %nding @@@@@@@@ ,2,000
6ateria"s used @@@@@@@@@@@@ '+,00 $irect %&penses @@@@@@@@@.@@ '00
Se""ing and genera" e&penses @@@@@@. +,700 $irect 0a1our @@@@@@@@@@@@ ,000
3actory overhead is app"ied at the rate o) 0A o) direct "a1or cost.
Requirement:
!ost o) 5ateria"s purchased, !ost o) goods 5anu)actured, !ost o) goods so"d and !onversion !ost.

Zakar Company
Cost o! Goods Sold State"ent
&or the Ended -ul.) *++/
Cost of Goods Sold #s$ %&'())
Con"ersion Cost ;
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Unit 9
Workbook
CGS # 9.6: 3o""o-ing are data %&tracted )ro5 Star Pvt. 0td. at the end o) $ece51er 3,
st
, 200.
Sa"es @@@@@@@@@@Rs. ,',000,#00 Sa"es Return @@@@@@@@@@.. Rs. 2#,200
Purchases B2etC @@@@@@ 2,'00,000 Transportation in-ard @@@@@@... 32,000
$irect 0a1our @@@@@@.. 3,20',000 3OD BTota"C@@@@@@@@@@@ ,,#,+00
Sa"es Sa"aries @@@@@@.. 200,000 9dvertising %&pense @@@@@@@.. ,##,000
$e"ivery %&pense @@@@@ +#,000
Durin0 the .ear *1)+++ units "ere co'pleted$
-nventores .ece"/er0 2008 1an&ar20 2008
3inished *oods @@@@@@@@@@@@ Rs. '+7,'00 @@@@@@@@@@@@. Rs. +20,000
/ork in Process @@@@@@@@@@@... ,3+,00 @@@@@@@@@@@@. ,2(,00
6ateria"s @@@@@@@@@@@@@@.. ,(+,000 @@@@@@@@@@@@. ,7+,000
Requirements:
*+, Tota" 3actory !ost *(, !ost o) *oods 6anu)actured *&, !ost o) *oods So"d
*-, *ross Pro)it and 2et Pro)it *., Per Enit !ost o) *oods 6anu)actured
Star Pvt. Ltd
Cost o! Goods Sold State"ent
&or the Ended Dece'2er) *++3
Cost of Goods /anufactured 0'-9-'%))
Gross Profit !
Net Profit !
Per unit Cost of goods manufactured ;
CGS # 9.3: 3o""o-ing $ata re"ated to F4< 6anu)acturing at the end o) 9pri", 20,0.
-,45,678-5S
5ndn% 9e%nnn%
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Unit 9
Workbook
3inished *oods @@@@@@@@@@@@@@@.. (#,000 @@@@@@@@@@@@.. G
/ork in Process @@@@@@@@@@@@@@@. G @@@@@@@@@@@@. 70,000
$irect 6ateria" @@@@@@@@@@@@@@@.. (#,000 @@@@@@@@@@@.@. (0,000
!ost incurred during the period
!ost o) *oods 6anu)actured @@@@@@@@@@@..@. #7',000
Tota" 6anu)acturing !ost @@@@@@@@@@@@@@ #',000
3actory Overhead @@@@@@@@@@@@@@@@@.. ,+7,000
$irect 6ateria" Esed @@@@@@@@@@@@@@@@. ,(3,000
Durin0 the .ear ,1)+++ units "ere co'pleted$
#e1uirements:
*a, Pri5e !ost *2, !ost o) *oods So"d *c, Per Enit !ost *d, !onversion !ost
XYZ Manuacturin!
Cost o! Goods Sold State"ent
&or the Ended 4pril) *+,+
Per unit Cost of goods manufactured ;
Con"ersion Cost ! Direct La2or 3 F45 ;
CGS # 9.8: 9ccount $epart5ent o) the 9.! !o. provides the )o""o-ing data at end o) >une 200(, you are reHuired to
prepare !ost o) *oods 6anu)actured: !ost o) *oods So"d: )ind out *ross Pro)it / 0oss 8 2et pro)it / 0oss and Per unit
6anu)acturing !ost at the 4ear ended 6ay 30
th
, 200(, assu5ing that 2et Sa"es o) Rs. 72,000, 6arketing %&pense #A,
9dvertising %&pense , A and Other %&pense 3A o) 2et Sa"es: 2et Purchases Rs. 3+,000 and $irect %&penses are , A o) 2et
Purchases: 3OD 2/3 o) $irect 0a1or and $irect 0a1or cost is Rs. ,#,000. Enits are produced during the period -as #,000.
6eginning 7n"entories #s 8nding 7n"entories #s
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Unit 9
Workbook
3inished *oods @@@@@@@@@@@@@@. 7,000 @@@@@@@@@@@@@@. ,0,200
/ork in Process @@@@@@@@@@@@@@ ,000 @@@@@@@@@@@@@@ ,#,000
6ateria" @@@@@@@@@@@@@@@@@. ,000 @@@@@@@@@@@@@@. ,#00
XYZ Manuacturin!
Cost o! Goods Sold State"ent
&or the Ended -une) *++/
Cost of Goods Sold #s$ .)'%%)

Gross Profit !
Net Profit !

Per Unit /anufacturing Cost ;
CGS # 9.9: 3o""o-ing data has 1een e&tracted )ro5 the 1ooks o) !ity !o5pany: you are reHuired to prepare !ost o) *oods
6anu)actured, !ost o) *oods So"d State5ent, *ross Pro)it / 0oss and 2et Pro)it / 0oss at the end o) Septe51er 30
th
, 200(.
Stock o) Ra- 6ateria" BOpeningC 2#,000 %"ectricity %&pense +00
3reight In-ard ,#00 Se""ing %&penses +,000
3reight out-ard +,000 6isce""aneous %&penses ,',000
/ages ,,000 Stock o) Ra- 6ateria" B!"osingC 2,000
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Unit 9
Workbook
Sa"es ',,000 Stock o) 3inished *oods?
3OD 2+,000 Opening 30,000
Return in-ard #,000 !"osing '0,000
Return Out-ard 3,#00 Provision )or $ou1t)u" $e1ts ,#00
3actory 3ue" and Po-er ,000 $epreciation ',000
/ork in Process BOpeningC 7,000 Purchases o) Ra- 6ateria" 2#0,000
/ork in Process B!"osingC ',000 .ank Interest Received 2,+00
Repairs to O))ice 1ui"ding ',+#0 $irect 0a1or !ost ,+,000
City Company
Cost o! Goods Sold State"ent
&or the Ended Septe'2er) *++/
Pri5e !ost 320,000
Cost of Goods /anufactured &-9')))
Cost of Goods Sold #s$ &&9')))
Gross Profit !
Net Profit 9 Loss !
!aheers"ati#ciit$net$p% CGS (Unsolved)

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Unit 9
Workbook
CGS # 9.10: 3o""o-ing data has 1een e&tracted )ro5 the 1ooks o) 999 /ood !o5pany: you are reHuired to prepare !ost o)
*oods So"d State5ent, *ross Pro)it / 0oss and 2et Pro)it / 0oss at the end o) >une 30
th
, 200.
!ash ,0
9ccount Receiva1"e ,,7
9""o-ance )or dou1t)u" accounts (0
$irect 6ateria" Inventory, >u"y 0,, 2007 37#
/orkIinIprocess, >u"y 0,, 2007 '#0
3inished goods, >u"y 0,, 2007 333
!arriage in-ard #'
3actory %Huip5ents #,0
9ccu5u"ated $epreciation 7 3actory %Huip5ent ,,+(#
O))ice %Huip5ent ,,'2
9ccu5u"ated $epreciation 7 O))ice %Huip5ent 73
9ccount Paya1"e ,,,,3
6isce""aneous %&penses Paya1"e 3++
!apita" 7,,+7
2et Sa"es ,+,2(0
2et Purchases 3,20,
$irect 0a1or ',+0#
3actory Overheads 3,+7
Se""ing %&penses 2,+,+
9d5inistrative %&pense (7
Inco5e Ta& 7#0
:otal #s$ (0'-.9 #s$ (0'-.9
Inventory on >une 30
th
, 200 are
$irect 6ateria" Inventory Rs. '#3: /orkIinI Process Inventory Rs. 2(' and 3inished *oods Inventory Rs. '02
""" Wood Company
Cost o! Goods Sold State"ent
&or the Ended -une) *++3
!aheers"ati#ciit$net$p% CGS (Unsolved)

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Unit 9
Workbook
Gross Profit !
Net Profit !
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