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A sole trader fixes her prices by adding 50 per cent to the cost of all goods purchased. On 31 October 20X3 a fire destroyed a considerable part of the inventory and all inventory records. Her trading account for the year ended 31 October 20X3 included the following figures: $ $ Sales 281,250 Opening inventory at cost 183,600 Purchases 249,200 432,800 Closing inventory at cost 204,600 228,200 Gross profit 53,050 Using this information, what inventory loss has occurred? A $61,050 B $87,575 C $40,700 D $110,850

A sole trader fixes her prices by adding 50 per cent to the cost of all goods purchased. On 31 October 20X3 a fire destroyed a considerable part of the inventory and all inventory records. Her trading account for the year ended 31 October 20X3 included the following figures: $ $ Sales 281,250 Opening inventory at cost 183,600 Purchases 249,200 432,800 Closing inventory at cost 204,600 228,200 Gross profit 53,050 Using this information, what inventory loss has occurred? A $61,050 B $87,575 C $40,700 D $110,850

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A sole trader fixes her prices by adding 50 per cent to the cost of all goods purchased. On 31 October 20X3

a fire destroyed a considerable part of the inventory and all inventory records.

Her trading account for the year ended 31 October 20X3 included the following figures:

$ $

Sales 281,250

Opening inventory at cost 183,600

Purchases 249,200

432,800

Closing inventory at cost 204,600

228,200

Gross profit 53,050

Using this information, what inventory loss has occurred?

A $61,050

B $87,575

C $40,700

D $110,850

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