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there is the question for F3*INT ,the given answer is A, but I thought is B. Can anybody tell me how to deal with this.
In the year ended 31 Decenmber 2005,Beverton made a gross profit of $72,000 on sales of $200,000.
In the following year its sales increased by 20% and its gross profit percentage decreased by 3%.
Purchases for 2006 totalled $170,000, a 25% increase on the previous year, and stock at 31 December 2006 was valued at $51,000.What was the stock figure at 31December 2005?
A $33,800
B $41,800
C $42,300
D $52,200THANK YOU.
Hi Jane,
You are asked to calculate the opening stock for 2005 Dec. but at first you should find out the op. stock for 2006 Dec.
2006
Sales 240,000
Cost of sales: 160,800
Gross profit: 79,200
Op. stock = 160,800 + 51,000 – 170,000 = 41,800
2005
Sales: 200,000
Cost of sales: 128,000
Gross profit: 72,000
Op. stock = 128,000 + 41,800 – 136,000 = 33,800Hope it helps, if you have any questions, feel free to post.
Regards
TammiSorry Im stilled confused!
If you’re asked for the stock @ 31dec 2005 is this not the opening stock @ Jan 2006? Which would be answer B????
I know you’ve given the answer above but the question doesnt ask for opening stock it asked for stock at year ended 2005?
sorry to confused you.
i think the given answer is wrong. correct answer would be B.
A is the answer for opening stock 2005.
B is the stock@ 31 dec2005,Yeah I hope so or else Im lost in the trading account also ha I’m panicking with the exams looming Im hoping I’ve done enough!
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