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Pre and post incorporation

Accountancy

How. To calculate COGS ratio in the following question

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GOKULALAKSHMI PANNEER

GOKULALAKSHMI PANNEER

CA Final

2K+

11-Sep-23 20:21

303

Answers (10)

Use sales ratio


CA Suraj Lakhotia

CA Suraj Lakhotia

Admin

12-Sep-23 06:40

Sir but as per point (b) there is some changes in COGS .


Thread Starter

GOKULALAKSHMI PANNEER

GOKULALAKSHMI PANNEER

CA Final

2K+

12-Sep-23 07:21

Calculate like you calculate sales ratio


CA Suraj Lakhotia

CA Suraj Lakhotia

Admin

12-Sep-23 07:23

Assume x per month before and adjust after


CA Suraj Lakhotia

CA Suraj Lakhotia

Admin

12-Sep-23 07:32

Is it correct sir

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Thread Starter

GOKULALAKSHMI PANNEER

GOKULALAKSHMI PANNEER

CA Final

2K+

12-Sep-23 07:34

But ans is

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GOKULALAKSHMI PANNEER

GOKULALAKSHMI PANNEER

CA Final

2K+

12-Sep-23 07:35

Sales also increased right


CA Suraj Lakhotia

CA Suraj Lakhotia

Admin

12-Sep-23 07:41

Yes sir 25%


Thread Starter

GOKULALAKSHMI PANNEER

GOKULALAKSHMI PANNEER

CA Final

2K+

12-Sep-23 07:46

Assume sales is 300 and 1100 If COGS is 100 in pre incorporation, COGS should be 100/300 x 1100 is post incorporation = 366.67 But the COGS reduced by 10% so 366.67*90% = 330. So COGS is 100:330


CA Suraj Lakhotia

CA Suraj Lakhotia

Admin

21-Sep-23 09:38

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