- This topic has 5 replies, 2 voices, and was last updated 9 years ago by
.
- Posts
Good morning Mike,
I got bit confused with the answer to the mini exercise cost of sales number 2. I got the figure of 382,500 of the cost of sales but later I’m lost with the rest of the figures (closing and opening inventories). Will it be possible to give me a hand with that? Thank you in advance!
Cheers!
Miguel
Let me give you a tip …. use algebra!
Let “x” be the value of the opening inventory and then go from there
Hi Mike,
I have re-read the question a couple of times but I still can’t get the answer from the opening & closing inventories (even with algebra). I’m getting a bit frustrated.
On the other hand as well from the mini exercises of cost sales on the question number 15 I don’t get why we calculate the pup from the figure of 11,600 (I understand is coming from 16-4,4) though it is not stated in the question that “s”sold any of these items so shouldn’t the PUP be calculated from the 16k?
Thank you once again for your help!Cheers!
Miguel
Ok, again!
Let “x” be opening inventory so then closing inventory becomes “1.3x”
Can you manage from there, knowing that cost of sales = opening inventory + purchases – closing inventory?
Question 15 – the question does actually say “S’s inventory was counted on 31 March 2012 and does not include any goods purchased from P.”
OK now?
- You must be logged in to reply to this topic.