ACCA FA2 CLOSING INVENTORY
Ruth started trading a year ago. She selles her products at a mark up of 30%. In the first year of trading, she bought goods for $70,000. Her sales in the year were $26,000.
What is the value of Ruth's closing inventory?
SUGGESTED SOLUTIONS
| $ | |
| Sales | 26,000 |
| Divided by | 1.3 |
| Cost of sales | 20,000 |
| Purchase | 70,000 |
| Closing Inventory | 50,000 |