# Cost of Goods Sold - Calculating missing figures

Registered Posts: 6
Afternoon, Can anyone help please ? I understand COGS = Opening Inv + Purchases - Closing Inventory.

In my mock exam on the AAT site there was the following question, can anyone explain how to calculate the purchases figure ? It seemed like there were not enough figures to do the calculation ?

Business is a sole trader and registered for VAT. Cost of goods sold for Year End Mar 2017 was £120,960. Inventory decreased by £550 during the year.

i) Calculate the total value of purchases net of VAT for the year ended 31 Mar 2017?

Is there a way to work this out from the information given ?

Many thanks,
Kim

• MAAT Posts: 448
The key here is inventory decreased by £550.

This means that opening - closing inventory = 550

Rearrange the equation:

COGS-(Opening inventory-closing inventory)= purchases

Purchases = 120960 - 550
= 120410
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• Registered Posts: 6
Thank you !