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help with cost of sales

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › help with cost of sales

  • This topic has 3 replies, 3 voices, and was last updated 10 years ago by MikeLittle.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • November 3, 2014 at 7:17 am #207351
    mysoul
    Member
    • Topics: 28
    • Replies: 30
    • ☆☆

    Good morning Sir,
    please kindly help with the working of your answers to the following.
    Even after solving the problems and could not get the correct answers as compare to yours .
    e.g in question 1 below, I could get the closing inventory but how you arrive at purchase figure I tried all my best but could not get the figure.

    thanks

    1 Cost of Sales
    Question 1
    A butcher sells $300,000 of meat at a consistent mark up of 25%. His inventory at the start of the year was $15,000. This had increased by
    20% by the end of the year.
    Calculate the purchases for the year.
    Question 2
    His rival down the road achieves a gross margin of 15%. His closing inventory was 30% higher than the opening inventory. Sales in the
    year were $450,000 and purchases were $400,000.
    What was the opening inventory?
    Question 3
    The local supermarket sold $500,000 worth of goods in January at a consistent mark up of 12½%. Opening inventory was $20,000 and
    purchases in the month were $440,000.
    How much was closing inventory?

    November 6, 2014 at 4:05 pm #208026
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23318
    • ☆☆☆☆☆

    Instead of making me write the answers out in full, tell me the three figures (one from each printed answer) that you don’t see how it was arrived at

    May 21, 2015 at 2:32 pm #247668
    beautyashma
    Member
    • Topics: 3
    • Replies: 5
    • ☆

    can any one help i got q1 and q3 and some of q2 but am looking the solution to the rest of the question 2. please thanks

    sales 450

    Op In ?
    purchases 400
    Available for sale ?

    Cl In ?

    COS 382.5
    GROSS pROFIT 67.5

    how do i find the missing figures with the given information

    May 21, 2015 at 4:05 pm #247726
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23318
    • ☆☆☆☆☆

    Let “x” be the opening inventory and therefore “1.3x” is the closing inventory

    Now take it from there using that basic algebra that you were taught in senior school!

    And if you can’t take it any further, post again and I’ll lead you through it

  • Author
    Posts
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