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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › chapter 18 test 5
how could the answer be A.185 000
opening inventory is 380000
purchases is 480000
sales is 500000 (650000/130) x 100
the closing inventory should be 360000,
instead it is 220000 so 140 was destroyed in the fire. how did you get 185000
You have asked this also as a comment to the lecture and I have answered you there.
185,000 is correct.
There is a margin of 30% and so the cost of sales is 70% of 650,000 (and not 650,000/130 – that would only be correct if the question said there was a mark-up of 30%).