FAPR question

catbethbond

Hi I came across the following question and couldn't quite get my head round how to work it out. (have made up the numbers as cant remember the exact)
I had the total purchases e.g. £114000
Mark up is always 40%
Vat registered, all sales and purchases on credit
The inventory decreased by 2700 during the year
Calculate cost of sales.

Any help would be greatly appreciated

JC101

Is it...
Costs = Opening Inventory + Purchases - Closing Inventory
Costs = 12,700 + 114,000 - 10,000
(I've used 12,700 and 10,000 just to represent the 2,700 decrease in inventory)
Costs = £116,700