Home For AAT student members AQ 2016 Advanced Diploma in Accounting Final Accounts Preparation
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Mark up - mind blank!

So am revising for my sypnotic and I have total brain freeze with this question. I’m in a pickle and not sure where to start! X


  • Pian32Pian32 Registered Posts: 144
    The mark up means that what ever is spent on the costs is increased by the amount given before being sold. e.g buy something for £100 you sell it for £125 if the mark up is 25%.

    This means the profit will by 25% the cost of sales.
    CoS therefore equals 16250/25 *100 = £65,000
    Sales is CoS*1.25 = £81,250

    For closing inventory you take the opening add purchases and subtracts the cost of goods sold.

    5,550+74,350-65,000= £14,900

    I hope this helps.

    N.B If it talks about profit margin then the profit is that % of sales. The margin on the example at the top is 25/125*100= 20%
    AAT Level 4, MAAT
  • LA2018LA2018 Registered Posts: 19
    This is perfect thank you 😃
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