ACCA F3 Incomplete 3
A fixes prices to make a standard gross profit percentage on sales of 25%
The following information for the year ended 31 December 2014 is available to compute his total sales for the year.
| $ | |
| Opening inventory | 86,415 |
| Closing inventory | 121,104 |
| Purchases | 236,703 |
| Purchases Returns | 7,101 |
What is the sales figure for the year ended 31 December 2014?
SUGGESTED SOLUTIONS
| $ | |
| Opening inventory | 86,415 |
| Plus Purchases | 236,703 |
| Minus Purchases Returns | (7,101 ) |
| Minus Closing inventory | (121,104 ) |
| Cost of Sale | 194,913 |
Sales = Cos / (1- gross profit/100)
= 194,913 / (1- (25 /100))
= $259,884