Cost of Goods Sold - Calculating missing figures

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,


  • Pian32
    Pian32 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
    AAT Level 4, MAAT
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  • KimRs
    KimRs Registered Posts: 6
    Thank you !
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