Calculating closing inventory

Cat37

Hi,

Please could someone explain how the following is worked out?

Cost of good sold = £47925
Purchases = £46,795
Calculate the closing inventory ? Answer is £4720 but struggling to work out why this is the answer.

Thanks in advance

CeeJaySix

You should also have an opening stock figure...??

Opening stock plus purchases less CoGS = closing stock.

Platt

I think this is the same question that was discussed here http://forums.aat.org.uk/discussion/440653/margin-and-markups-confused#latest

Hope this helps!