00:01
So, first we need to calculate the cost of goods sold.
00:03
So, we will write as cogs.
00:05
So, cogs is calculated as the cost of raw material, cost of raw material plus the cost of production, cost of production.
00:18
So, the cost of raw material is the cost of raw material purchased plus the beginning inventory of raw material, inventory of raw material minus the ending inventory of raw material.
00:36
So, the cost of production is the and if we talk about the cost of production is cost of finished goods sold which is the beginning inventory plus the cost of goods manufactured, beginning inventory 30, cost of goods manufactured, goods manufactured minus ending inventory, ending inventory.
01:04
So, the cost of raw material over here is 1054 million plus 40 million minus which would be equal to 1064 million.
01:20
Now, if we talk about the cost of finished goods, it is equal to 300 million plus 5600 units multiplied to unit cost, unit cost.
01:40
So, also we will minus 355 .2 million ending inventory.
01:45
So, after solving it we will get the answer which is going to be equal to 1961 .6 million.
01:57
So, the answer for the cost of goods sold will be equal to 3025 .6 million.
02:04
Now, we will calculate the operating profits...