FSTP SAMPLE ASSESSMENT 1 TASK 2C HELP

chanshay

I know I should know the answer but for the life of me I just can not work it out..mind has gone blank.

It asks to work out the closing inventory value....I know the actual answer is £4720 but I can not work out how to get to that figure!!!

I have worked out the rest

Task 2a
Assest = £19650
Liabilites = £5560
Capital = £14090

Task 2b
During the year ended 31 March 20x7, sales of £63,900 were made. The trader operates a gross sales margin of 25%

Calculate the cost of goods sold for the year ended 31 March 20x7

=£47925

Task 2c
Purchases for the year were £46,795
Calculate the value of closing inventory

CeeJaySix

I assume you are given an opening stock value in the question?

Take that, add purchases, deduct cost of goods sold and you should get to the answer (assuming no complicating factors).

FrancesM

Opening inventory figure is supplied in question a

Opening inventory 5850 + Purchases 46795- cos 47925=4720

chanshay

Thank you so much I see it now and I was just over thinking it!!