ACCA F3 Incomplete 2

A fire on 30 September 2014 destroyed some of the company's inventory and its inventory records. The following information is available:

	$
Opening inventory	12,345
Sales	70,200
Purchases	710,109
Inventory in good condition	63,168
Standard gross profit percentage on sales is	5

Based on this information, what is the value of the inventory lost?

SUGGESTED SOLUTIONS

Cost of sales = Sales X (1- ((gross profit )/100))

Cost of sale = 70,200 X (1- ((5/100))

Cost of sale =66,690

	$
Opening inventory	12,345
Plus Purchases	710,109
Minus Cost of Sale	( 66,690)
=closing balance	655,764
Minua Inventory in good condition	(63,168)
Value of Inventory lost	592,596