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Sir, please help me with the answer to the following question on inventory.
The inventory value for the financial statements gggg for the year ended 30/06/03 was based on an inventory count on 7 July 2003 which gave a total inventory value of 950,000.
Between 30 June and julyjuly 2006the following transactions took place
Purchases of goods 11,750.00
Sales (mark up on cost at 15%) 14,950.
Goods returned by global inc to supplier 1500
What figure should be included in the financial statements for inventories at 30 June 2003?Thank you
Ohh sorry it was a topographical error! ? The cost of goods sold is usd60,0000.00
And thank you so very much for your prompt reply sir, I appreciate.
I will definitely watch the lecture on mark up and profit marginSuppose that the inventory of joe Hans business on July 1 2006 has a value of Closing inventory of usd8400, and an inventory count at 30 June 2007 showed inventory to be valued at usd9350. Sales for the year to30 June 2007 are usd80000, and the business makes a mark-up of 33 1/3% on cost for all the items that it sells. What are the purchases during the year?
The answer are as follows:
Sales (133 1/3%) = usd 80000
Gross profit (mark up) (33 1/3%) = usd20,000.00 and cost of goods sold is usd100,000.00
My question here sir is how does 33 1/3% is equal to 20. I am using my calculator and am not getting the current answer. How does the publisher (bpp f3 page 305) got his answer please.