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Lucas wagg, trading as fairlock fashions, ends his fianacial year on 31st march. At 1 April 2005 he had goods in inventory valued at $8,800. During the year to 31 March 2006, he purchased goods costing $48,000. Fashion goods which cost $2,100 were still held in inventory at 31 March 2006, and Lucas wagg believes that these could only now be sold at a sale price of $400. The goods still held in inventory at 31 March 2006 (including the fashion goods) had an original purchase cost of $7,600. Sales for the year were $81,400.
Calculate the gross profit of fairlock fashions for the year ended 31 March 2006.
learn the formula
sale ***
opening inventory ***
purchases ***
closing inventory (***)
cost of sale (***)
gross profit ****sale 81400
opening inventory 8800
purchses 48000
closing inventory (5900)*
cOI (50900)
GP (81400-50900) 30500*frst calculate NRV.ITS sale – cost
so (2100-400= 1700)
7600-1700= 5900@tabsom said:
learn the formula
sale ***
opening inventory ***
purchases ***
closing inventory (***)
cost of sale (***)
gross profit ****sale 81400
opening inventory 8800
purchses 48000
closing inventory (5900)*
cOI (50900)
GP (81400-50900) 30500*frst calculate NRV.ITS sale – cost
so (2100-400= 1700)
7600-1700= 5900Can you plese explain me the last part The calculation of closing inventory .
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