Mini Exercise Questions – Cost of sales Q2

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October 22, 2015 at 1:14 pm #278398
Jonathan
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I’m having trouble calculating the opening & closing stock on Mini Exercise Questions – Cost of sales Q2

Sales of $450k with gross margin of 15%
Gross profit (450 x 15%) $67.5
Cost of sales $382.5

Purchases $400k
Closing stock 30% higher than opening stock?

I’m having trouble working out the opening & closing stock?
From the book the answers are:
opening stock =$58.33
Closing stock = $75.83

Thanks
Jonathan
October 22, 2015 at 2:28 pm #278407
MikeLittle
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Let “X” be the value of the opening inventory

Go from there
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