ACCA F3 Mock Exam Inventory
A fire on 30 September destroyed some of a company’s inventory and its inventory records.
The following information is available:
Inventory 1 September $900,000
Sales for September $60,000
Purchases for September $300,000
Inventory in good condition at 30 September $30,000
Standard gross profit percentage on sales is 25%
Based on this information, what is the value of the inventory lost?
ACCA F3 Mock Exam Inventory
Suggested Solution:
| Inventory 1 September | 900,000 |
| Plus Purchses for September | 300,000 |
| Minus Cost of Sales | 45,000 |
| Closing inventory | 1,155,000 |
| Inventory in good condition at 30 September | 30,000 |
| Closing inventory | 1,155,000 |
| value of the inventory lost | 1,125,000 |
Note
COS = Sales * (1-0.25)
=Sales X 0.75
=60000 X 0.75
=45000