SoPL Breakdown Flashcards
1
Q
What is the formula for Cost of Goods Sold (Cost of Sales)?
A
COGS = Opening Inventory + Purchases (including inward delivery and direct costs) - Closing Inventory
2
Q
What is the formula for Cost of Goods Sold (for a manufacturing company)?
A
3
Q
What is the formula for Gross Profit?
A
Gross Profit = Revenue - COGS (COS)
4
Q
What are the accounting entries for closing stock?
A
Dr Closing Stock (soFP/balance sheet)
Cr Closing Stock (P&L)
