1.

Compute cost of goods sold for the year 2017:

Answer»

Calculation of cost of goods sold for the year 2017:

Cost of goods sold = opening stock + Purchased + Direct expenses – closing stock

= 30,000 + 1,50,000 + (10,000 + 10,000) – 40,000

= 30,000 + 1,50,000 + 20,000 – 40,000

= 2,00,000 – 40,000

Cost of goods sold = Rs. 1,60,000

Note: Direct expenses includes both wages as well as carriage inwards.



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