Pracise Assesment 1 Task 6, HELP!

Can anyone please help me with this question? I managed to get the COS to be 1825000 through doing (225000*365)/45 but now I am stuck. Is there an easy way round this or am i over complicating it?

Answers

  • Krisso
    Krisso AATQB, AAT Licensed Bookkeeper Posts: 122
    Hopefully this helps



    You have calculated Cost of sales correctly so COS must be 80% which means Sales will be the 100%
    You can then calculate gross profit and verify your figure by taking COS from your calculated sales
    Selling Costs and Admin costs are easy calculations just watch your rounding

    I have included basic calculations next to each line so hope you find this useful
  • ThomasD48
    ThomasD48 Registered Posts: 3
    Thankyou so much @Krisso

    i was looking online at another post and this is how they calculated it, wtf!

    To calculate Sales:

    GP% = GP/Sales
    GP%= (Sales - costs of sales)/sales

    20%=( sales - £1,825,000)/sales
    1/5 sales = sales - costs of sales
    sales - 1/5 sales = costs of sales
    5/5 sales - 1/5sales = CoS
    4/5 sales = CoS
    4/5 sales = £1,825,000
    Sales= £1,825,000*5/4
    sales = £2,281,250


    your way is so much easier and im kicking myself for not noticing haha, was there an easier way to calculate COS compared to the way i did it?


  • Krisso
    Krisso AATQB, AAT Licensed Bookkeeper Posts: 122
    I calculate COS the same way
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