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- This topic has 3 replies, 3 voices, and was last updated 9 years ago by MikeLittle.
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- November 3, 2014 at 7:17 am #207351
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 #208026Instead 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 #247668can 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 67.5how do i find the missing figures with the given information
May 21, 2015 at 4:05 pm #247726Let “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
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