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 $70,000. Her sales in the year were $52,000.
What is the value of Ruth's closing inventory?
SUGGESTED SOLUTIONS
$ | |
Sales | 52,000 |
Divided by | 1.3 |
Cost of sales | 40,000 |
Purchase | 70,000 |
Closing Inventory | 30,000 |