FRA

System
System Posts: 100,534 🤖 Admin 🤖
HELLO THERE! I AM NEW TO THIS FORUM!
CAN SOMEBODY HELP ME WITH THIS QUESTION.
THE QUESTION IS TASK 1.6 FROM FRA DECEMBER 2005.

ON 31 OCTOBER 2005, CLOSING STOCK WAS VALUED AT SELLING PRICE A 22, 750 EXCLUDING VAT. THE MARK UP ON THESE GOOD IS 40%.

CALCULATE THE CLOSING STOCK FIGURE.

answer: 22750/1.4= 16 250.

I don't know where the got 1.4.
Somebody help>

utseba@yahoo.co.uk

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:FRA

    Your selling price is 140% of the cost price so to calc cost price, you would divide by 140 and multiply by 100, hence 22750/1.4 = 16250. Hope this helps.
    Will you please undo your caps lock and use lower case.

    Regards
    Peter
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