Calculating Closing Stock. Help please !

System

Hi all you clever people

Can somebody point me in the right direction please. This question is driving me mad....

Stock 1/9/02 £2,000
Purchases £18,000
Mark up on cost of sales of 50%
Average stock during year was £4,000

Calculate closing stock at 31st Aug 2003 ???

Am I missing something ?

Thanks

System

Re:Calculating Closing Stock. Help please !

Hi Sally

As far as I can see it is either £4,000 (being the average ) or else you need to know the sales.

Claudia

System

Re:Calculating Closing Stock. Help please !


Hi Claudia

Thanks for replying

I thought I was missing something.lol

£4,000 seems a bit obvious.

Thanks again

System

Re:Calculating Closing Stock. Help please !

I agree it seems a bit obvious :oops: but without any other information - like sales - it is all that you can do.

Claudia

System

Re:Calculating Closing Stock. Help please !

average stock =opening stock + closing stock/2
4000= 2000+closingstock/2
8000=2000+Closing Stock

Closing Stock=6000

Therefore Cost of Sales= 4000+18000-6000
Cost Of Sales=16000

Markup=50%
Gross Profit=8000
Sales-Cost Of Sales=Gross Profit

Sales=Cost Of Sales + Gross Profit

Sales=16000 + 8000

Sales= 24000

System

Re:Calculating Closing Stock. Help please !

Sorry made I slight error in cost of sales

it should be 2000+18000-6000

Cost Of Sales=14000

Gross Profit Markup is 50% of Cost of Sales

Gross Profit is 7000

Sales will= Gross Profit + Cost Of Sales

Sales= 21000

Summary: Opening Stock 2000
Purchases 18000
Closing Stock 6000

Cost Of Sales 14000
Gross Profit 7000
Sales 21000