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What will be the ratio of dividing COGS?

Accountancy

What will be the ratio of dividing COGS? Since Sales has increased do we need to take COGS in proportion of Sales.

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Hrishikesh Ransing

Hrishikesh Ransing

CA Final

4K+

10-Jun-22 18:24

558

Answers (4)

divide COGS in sales ratio


COGS is given for calculation of Gross profit. As we Know Sales - COGS = Gross profit. Find out the sales ratio and divide Gross profit for pre and post incorporation.


Harish Kumar

Harish Kumar

CA Inter

17K+

11-Jun-22 08:46

Divide in sales ratio


Priyanka R

Priyanka R

CA Final

20K+

11-Jun-22 09:31

firstly, find out the sales ratio and then to calculate total income: - you can divide the sales and COGS separately in sales ratio, or - calculate (sales - COGS) you'll get gross profit i.e. (sales-COGS=GP) and then divide GP in sales ratio both the options give the same answer.


A B S Rukmini

A B S Rukmini

CA Inter

3K+

11-Jun-22 12:56

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