ACCA FA2 CLOSING INVENTORY
Ruth started trading a year ago. She selles her products at a mark up of 30%. In the first year of trading, she bought goods for $80,000. Her sales in the year were $13,000.
What is the value of Ruth's closing inventory?
SUGGESTED SOLUTIONS
| $ | |
| Sales | 13,000 |
| Divided by | 1.3 |
| Cost of sales | 10,000 |
| Purchase | 80,000 |
| Closing Inventory | 70,000 |