ACCA F3 Incomplete 3
A fixes prices to make a standard gross profit percentage on sales of 20%
The following information for the year ended 31 December 2014 is available to compute his total sales for the year.
| $ | |
| Opening inventory | 37,035 |
| Closing inventory | 107,648 |
| Purchases | 710,109 |
| Purchases Returns | 789 |
What is the sales figure for the year ended 31 December 2014?
SUGGESTED SOLUTIONS
| $ | |
| Opening inventory | 37,035 |
| Plus Purchases | 710,109 |
| Minus Purchases Returns | (789 ) |
| Minus Closing inventory | (107,648 ) |
| Cost of Sale | 638,707 |
Sales = Cos / (1- gross profit/100)
= 638,707 / (1- (20 /100))
= $798,384