Louai sells 210300 units of inventory during her trading fear ended 31 December 2018. The selling price of each unit is £ 5.50 and she makes a gross profit of 20%. The selling and cost price structure has remained unchanged for several years. Louai purchases a total of 205000 units during the year and a stocktake on 31" December 2018 show that she has 26385 units in the warehouse. How many units of inventory in the warehouse on 1" January 2018. A. 10600 B. 26685 C. 42170 D. 30987
Louai sells 210300 units of inventory during her trading fear ended 31 December 2018. The selling price of each unit is £ 5.50 and she makes a gross profit of 20%. The selling and cost price structure has remained unchanged for several years. Louai purchases a total of 205000 units during the year and a stocktake on 31" December 2018 show that she has 26385 units in the warehouse. How many units of inventory in the warehouse on 1" January 2018.
A. 10600
B. 26685 C. 42170
D. 30987
Cost of Goods Sold:
It is the total cost incurred by the business for the units sold during the accounting period. Different types of business incur various costs, for example, for retail business, it is the purchase costs of the goods for resale.
There is a formula for the calculation of cost of goods sold, which is:
For retail business:
Cost of goods sold = Beginning inventory + Purchases – Ending inventory
For manufacturing firm:
Cost of goods sold = Beginning finished goods inventory + Cost of goods available for sale – Ending finished goods inventory
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