cost of sales???? anyone know how to work this out?

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
getting confused on the DFS on how to work out cost of sales..
anyone help?

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:cost of sales???? anyone know how to work this out?

    Opening inventory
    plus purchases
    plus carriage in
    less closing inventory
    = COS
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:cost of sales???? anyone know how to work this out?

    Opening Stock add Purchases add returns inwards less closing stocks and returns outwards

    hope this helps
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:cost of sales???? anyone know how to work this out?

    Opening Inventories
    Plus Purchases
    Less Closing Inventories

    If there are returns outwards you would also deduct this.

    Susan

    P.S. If its any comfort I am dreading DFS tomorrow. I don't feel ready for it at all. It feels like this has been the hardest one so far as the syllabus is far bigger than the other units! Oh well - back to the studying.

    Good luck.

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:cost of sales???? anyone know how to work this out?

    cant seem to get the correct ansa.. im doing the exam paper dec o4 and cant seem to get to the ansa i need.. help??????
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:cost of sales???? anyone know how to work this out?

    Which question?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:cost of sales???? anyone know how to work this out?

    its part B. the P&L account for leakingman..
    cant seem to get the hang of it... ugggghhhh
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:cost of sales???? anyone know how to work this out?

    guess what... the ansa is in the workings shown on the suggested ansas.... oh someone knock sum sense into me>>>>>> sorry people..
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:cost of sales???? anyone know how to work this out?


    Open stock 4219
    plus purchases 22324
    plus carriage inwards 63
    less clossing stock 5104(5384 reduced by 280 because of revalueing)
    = 21502

    Hope that helps

    Angie xx
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:cost of sales???? anyone know how to work this out?

    Opening Inventories 4,219
    Plus purchases 22,324
    plus Carriage in 63
    Less Closing Inventories (5,104)
    Cost of Sales 21,502


    The Closing inventories figures is calculated by taking the value at 30 Sept of £5,384,000 and deducting the 280,000 difference between the items that cost 480,000 and will only be sold for 200,000.

    Hope this helps.

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:cost of sales???? anyone know how to work this out?

    anyone know whether continuing operations is the same as operating profit?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:cost of sales???? anyone know how to work this out?

    Is carraige outwards deducted from revenue?

    Also, what was the treatment for returns please?

    Oh last minute revision is frying my brain!!!!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:cost of sales???? anyone know how to work this out?

    i think carriage outwards is treated as an expense?? maybe under distribution costs. Check with some others though i may be wrong!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:cost of sales???? anyone know how to work this out?

    Carriage Inwards is cost of sales

    Carriage Outwards is an expense

    Scott.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:cost of sales???? anyone know how to work this out?

    Cheers for that. What about returns?

    I know I have done something where something was deducted from Revenue - does anyone know what this is? Confused confused confused. hmmm.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:cost of sales???? anyone know how to work this out?

    Revenue will be sales less sales returns, less Cost of Sales.

    Scott.

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