S1 Sales and Cost of Sales

This workpaper allows you to review sales for the year and calculate cost of sales.

Suggested supporting documents

  • Trial balance
  • Invoices

Sales

Enter details of sales made during the year into the sales table:

  1. Code: enter account codes that relate to sales.
  2. Enter details of sales made this year in column H.
  3. Enter details of sales made last year in column J.

Cost of goods sold

Enter cost of goods sold in the table:

  1. Opening stock: enter the account codes related to opening stock in column B, the opening stock value for this year and last year in columns H and J.
  2. Purchases: enter the account codes related to purchases in column B, the total purchases made this year and last year in columns H and J.
  3. Closing stock: enter the account codes related to closing stock in column B, the closing stock balances for this year and last year in columns H and J.

Gross profit

The gross profit indicates how much profit is made after paying for the cost of goods sold (the direct costs attributable to the production of goods and supplies such as inventory and stock).

  1. The gross profit and gross profit percentages will be populated based on the data entered into the workpaper.
  2. Where available, enter details of gross profit % benchmarks to compare the client's performance to similar businesses.

Balances

The general ledger balances populated at the bottom of the workpaper are based on the general ledger codes entered into B1.

  1. Where there are multiple account codes apply, enter multiple codes in column B in the applicable row.
  2. To enter a range of codes separate the first and last number with a dash “-“ .
  3. To enter multiple codes, separate the codes with a comma “,” .
  4. Where there is a variance between the general ledger balance and the workpaper, review the ledger transactions to determine where the difference may have stemmed from.