Harry's annual inventory count took place on 6 Jan 20X6.
The value of inventory on this date was $ 32,780.
During the period from 31 Dec 20X5 to 6 Jan 20X6, the
following events occurred:
Sales $8,600
Purchases $4,200
The value of inventory at 31 Dec 20X5 was $ 34,600.
What is the gross margin of Harry?
The Answer is 30%.
Solution :
Sales at Selling price $8,600
Sales at Cost price $6,020
Profit $2,580
(2580/8600)*100 = 30%
Can you please explain to me how do we get the Sales at Cost Price?
Ask the Tutor ACCA FA
Bank Reconciliation
10y ago#1The cost of sales = opening inventory + purchases - closing inventory.
So 34,600 + 4,200 - 32,780 = $6,020
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