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Here, selling price on units purchased is used to find out the total selling price.Why?usually we use SPÃ?units sold to find total selling price but here different.
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in this question purchase price per unit not given so we want to calculate purchase price with the given information. but selling price is given in that selling price we reduce profit we got the cost. step 1. calculation of gp ratio. puchase unit 6000 if all the 6000 units are sold what is the profit. so 6000*40 = 2.4L same as all dept. step 2. selling price = cost + profit. with the help of gp ratio we reduce profit in selling price so we got the actual purchase price
Elavarasi B
in this question purchase price per unit not given so we want to calculate purchase price with the given information. but selling price is given in that selling price we reduce profit we got the cost. step 1. calculation of gp ratio. puchase unit 6000 if all the 6000 units are sold what is the profit. so 6000*40 = 2.4L same as all dept. step 2. selling price = cost + profit. with the help of gp ratio we reduce profit in selling price so we got the actual purchase price
Kindly look at my query . What I have asked is different from what you answered.I asked why units sold*selling price is not taken ?
Thread Starter
Shankari CKindly look at my query . What I have asked is different from what you answered.I asked why units sold*selling price is not taken ?
Bcz . We dont't know cost of units sold But we know cost of units purchased We do have Selling price per unit So assume all units purchased are entirely sold Purchased units * cost/ut = Rs.6 lacs less :Purchased units * SP/ut =(both data given in Qn) = Profit This is the only assumption & only way to get gross profit
Thread Starter
Shankari CWe have units sold right? That's the way to find profit. Then how? I don't understand it.
Then means ,what is the purchase cost of those sold units? You can't find that.. For that reason only we assume the entire units purchased costing Rs 6 lacs were sold at the given Sp/ut . Hence we get profit Sales of 32,400 units Purchase of 32400 units = Profit
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