ACCA F3 Incomplete 3
A fixes prices to make a standard gross profit percentage on sales of 40%
The following information for the year ended 31 December 2014 is available to compute his total sales for the year.
| $ | |
| Opening inventory | 74,070 |
| Closing inventory | 26,912 |
| Purchases | 631,208 |
| Purchases Returns | 2,367 |
What is the sales figure for the year ended 31 December 2014?
SUGGESTED SOLUTIONS
| $ | |
| Opening inventory | 74,070 |
| Plus Purchases | 631,208 |
| Minus Purchases Returns | (2,367 ) |
| Minus Closing inventory | (26,912 ) |
| Cost of Sale | 675,999 |
Sales = Cos / (1- gross profit/100)
= 675,999 / (1- (40 /100))
= $1,126,665