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	74,070
Sales	46,800
Purchases	394,505
Inventory in good condition	71,064
Standard gross profit percentage on sales is	45

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 = 46,800 X (1- ((45/100))

Cost of sale =25,740

	$
Opening inventory	74,070
Plus Purchases	394,505
Minus Cost of Sale	( 25,740)
=closing balance	442,835
Minua Inventory in good condition	(71,064)
Value of Inventory lost	371,771