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Forums › ACCA Forums › ACCA FA Financial Accounting Forums › mark-up

  • This topic has 1 reply, 2 voices, and was last updated 12 years ago by danielglover.
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  • Author
    Posts
  • January 16, 2013 at 7:13 am #113698
    selv
    Member
    • Topics: 4
    • Replies: 1
    • ☆

    can someone solve this ques:
    — X has a financial year end of 31 Dec. On 8 July 20×6,flooding destroyed some of accounting records of the company. The accounting staff were able to determine from the undamaged records that, from 31 Dec 20×5 until 8 July 20×6 :
    (1) inventories increased by $ 22,500
    (2) sales revenues were $ 276,500
    (3) the profit mark-up on goods sold was a uniform 25 %.
    What were the purchases for the period from 31 Dec 20×5 to 8 July 20×6 ?

    January 16, 2013 at 9:19 pm #113774
    danielglover
    Member
    • Topics: 13
    • Replies: 100
    • ☆☆

    £243,700

    Be aware, I’m not 100% sure.

    Inventories increased by 22,500, so we must have purchased this amount.

    Sales revenue = 276,500
    Markup of 25%
    Cost = 221200 *

    Inventory + Sales at cost = 243,700

    *
    276500 / 1.25 = 221,200
    (If 125% = 276500, then 100% = 221,200)

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