Confused
Maths3030
Registered Posts: 2
Hi, i have a question to find the closing inventories, but i don't understand how the answer is £90,600.
- Sales revenue = £306,000
- Opening inventories = £140,000
- Gross profit = £116,000
- Purchases were 74% of COGS
I worked it out but i keep getting the wrong answer.
- Sales revenue = £306,000
- Opening inventories = £140,000
- Gross profit = £116,000
- Purchases were 74% of COGS
I worked it out but i keep getting the wrong answer.
0
Comments
-
Sales revenue - COGS = Gross profit
£306,000 - COGS = £116,000
COGS = £190,000
COGS = Opening inventories + Purchases - Closing inventories
£190,000 = £140,000 + (£190,000 x 74%) - Closing inventories
Closing inventories = £140,000 + £140,600 - £190,000
Closing inventories = £90,6002 -
Thank you0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 18.9K For AAT students
- 259 NEW! Qualifications 2022
- 146 General Qualifications 2022 discussion
- 9 AAT Level 2 Certificate in Accounting
- 37 AAT Level 3 Diploma in Accounting
- 64 AAT Level 4 Diploma in Professional Accounting
- 8.9K For accounting professionals
- 23 coronavirus (Covid-19)
- 274 VAT
- 92 Software
- 274 Tax
- 137 Bookkeeping
- 7.3K General accounting discussion
- 193 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 352 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 590 Job postings
- 17 Who can benefit from AAT?
- 36 Where can AAT take me?
- 44 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 65 AAT membership