Closing Stock calculation in exam

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:31AM in AAT student discussion
I know what is done is done and we now have to wait for Februaury for the results but the closing stock figure is really bugging me. Can someone please let me know how it should have been calculated?
Question was:
Closing stock of £37850 (guess, can't remember exact figure), not including VAT with/had a mark up of 40%. Calculate the figure. I had no idea what to do here, some help would be appreciated.

Many thanks

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Closing Stock calculation in exam
    X5wrangler wrote:
    I know what is done is done ...but the closing stock figure is really bugging me....
    Hi X5wrangler
    If I am not mistaken, the Closing Stock figure(at selling price ) was £22750. To find the cost, you need to take the 40% mark-up from the selling price:
    £22750x40/140=£6500.
    So £22750-£6500=£16250
    Value of closing stock in the BS and P&L account =£16250.

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Closing Stock calculation in exam

    Thanks for your help there, I obviously didn't learn what I should have done!! The "not including VAT" bit totally threw me, does Closing Stock ever include VAT or was that just thrown in? I am going back to my books big time on this one. Not at all happy with how I have done, I don't deserve to pass, workings out or not.
    Cheers
    Mandy
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Closing Stock calculation in exam
    X5wrangler wrote:
    ...does Closing Stock ever include VAT or was that just thrown in? ...
    If you remember the Day books at the beginning of the question, they had an amount for purchases net of VAT and a column for VAT. The third column shows the total figure for SLCA and PLCA. Once the VAT is separated, what is left is Purchases net of VAT. So when you do closing stock, you ignore VAT altogether unless the VAT is irrecoverable. In which case the VAT should be included as part of the cost of purchases.
    Anyway, there is no point in getting worried about it now, be positive and wait for results to come out. You just never know untill then how you are going to be marked.
    Nice day
    Tom
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Closing Stock calculation in exam

    Tom,

    I am being positive, I'm positive I have failed hahahaha!

    Have a nice day too.
    Cheers for your help.
    Mandy
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Closing Stock calculation in exam

    i worked my answer like this : 22750 / 140 *100= 16250..it was a guess I totally wasn't sure of the right way of doing it! so if it is the right answer - I will be over the moon...the only thing is I am not sure if I had put it twice in the TB for P/L and the BSheet. I am sure I did put it on one of the two..... I hope! The thing is I was correcting everything so many times.... I am not even sure what I had left for my answer....knowing my luck I had crossed it out thinking it was the worng answer after my TB was out by approx. 56 000.... :( I wish we would get our results sooner and I wish we would get feedback on our papers..to see where we had gone wrong. It would help me learn it better! It is a silly system AAT use. Plus knowing marks for each question would help too!!

    grrrr this long wait is driving me crazy !!

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