Unit 5 Past Exam Paper
jewels.p
Registered Posts: 1,774
Can anyone help with this question?
On 30 September 2008, closing stock was recorded at its selling price of £19,800 exc. VAT. The markup on the cost of these goods is 65%
Calculate the closing stock.
My answer was £19,800 less the 65% markup which came to £6930
The correct answer is £12000 :huh:
Look like I need to study Stock a lot more than I have!:thumbdown:
P.S It is from Decembers Exam Paper which I thought I would have a look at but only at question 1.5 and stuck already not a good sign:crying:
On 30 September 2008, closing stock was recorded at its selling price of £19,800 exc. VAT. The markup on the cost of these goods is 65%
Calculate the closing stock.
My answer was £19,800 less the 65% markup which came to £6930
The correct answer is £12000 :huh:
Look like I need to study Stock a lot more than I have!:thumbdown:
P.S It is from Decembers Exam Paper which I thought I would have a look at but only at question 1.5 and stuck already not a good sign:crying:
0
Comments

19,800/ 1.65 = 12,000
the mark up on 12,000 was 7,800 which is 65% therefore the actual value of the stock which is lowest of cost or net realisable value is 12,000.0 
Hi Jewels.p
The way to work this out is to take the Closing stock at Sales value
£19,800
and divide by the mark up of 65% i.e 1.65 and then you arrive at the cost price of the stock which is as the answer says £12,0000 
I mean why are you dividing it by 1.65?
hi dont know if this will help but i got a little confused in class myself on mon with this......my tutor explained it as so...
if you ever get stuck take it back to 1%
19800 is 165% so divide it into 165 to get your 1%
1% = 120
multiply by 100 to get price before it was marked up which £1200
or by 65 to get the 65% number it was marked up by...7800
:001_smile:0 
I worked it out in the exam by using the same principle as for finding net from gross for Vat. I would divide by 1.175 so instead I divided by 1.65 to find the cost before the 65% had been added.
Thats prob why I am getting confused. When I am calculating VAT I work it out by dividing it by 47 then multiply by 7 then deducting VAT from gross cause thats the way I have always done it at work. I dont do the decimal calculations.0 
hi dont know if this will help but i got a little confused in class myself on mon with this......my tutor explained it as so...
if you ever get stuck take it back to 1%
19800 is 165% so divide it into 165 to get your 1%
1% = 120
multiply by 100 to get price before it was marked up which £1200
or by 65 to get the 65% number it was marked up by...7800
:001_smile:
Thanks for that. I am gonna print that off and keep it in my folder for future reference. :thumbup1:0 
I kinda find it easier to work out if i use a method :
(19800/165 = 120)
165% = 19800
65% = 7800 ( 120 x 65)
100% = 12000 (120 x 100)
Just a suggestion i am doing the past exam papers myself at the moment. :s0
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