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Dear Tutor, Kindly assist with these 2 questions below. Thanks in advance.
Question 1…In the year to October 31, 2010 Jamali’s sales were $142,200, all of which were made at a mark-up of 20%. His opening inventory value was $5,400 and his closing inventory value was $3,600. What is Jamali’s value of purchases in the year to October 31, 2010?
Question 2….Liz obtains a 25% margin on all her sales. In the year to 31 March 2010 she bought goods with a total value of $69,000. Her closing inventory cost $3,000 less than her opening inventory. What is the value of Liz’s sales in the year to 31 March 2010?
Two things:
Have you watched our free lectures? Mark-ups and margins are dealt with in detail in our lectures (and I am not going to type out the lectures here!).
Surely you have answers in the same book in which you found the questions – if not then you should be using different books! (Unless the questions were set as homework, and we are certainly not here to do your homework for you 🙂 )
1. Cost of sales = 100/120 x 142,200 = 118,500.
Therefore purchases = 118,500 – 5,200 + 3,6002. Cost of sales = 69,000 +3,000 = 72,000
Therefore sales = 100/75 x 72,000 = 96,000Do watch our lectures – they are a complete free course for Paper F3 and cover everything needed to be able to pass the exam well.
(You also asked this same question under a thread about the BPP discount on books! Why on earth you did that I don’t know but I have deleted it!!)
Dear Tutor. Thanks a lot and I am pretty sure I am gonna pass with flying colors next time I attempt F3.
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