Opening Inventory + Purchases – Closing Inventory = Cost of Sales (CoS) Mark up cost structure example with example of Margin cost structure Sales       125%                                                      Sales         100% CoS         (100%)                                                   CoS            (75%) Gross Profit 25%.                                                   Gross Profit 25% A flood on 30th Nov destroyed some of a company’s inventory and its inventory records. The following information is available: - Inventory at 1st Nov.            31,800      - Sales for Nov.                      61,200 - Purchases for Nov.              41,200 - Inventory in good condition at 30th Nov.    21,400    The standard gross profit percentage on sales is 20%. Based on this information, what is the value of the inventory lost? ($5,700, $9,600, $2,640 or $2,710)

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Opening Inventory + Purchases – Closing Inventory = Cost of Sales (CoS)

Mark up cost structure example with example of Margin cost structure

Sales       125%                                                      Sales         100%
CoS         (100%)                                                   CoS            (75%)
Gross Profit 25%.                                                   Gross Profit 25%

A flood on 30th Nov destroyed some of a company’s inventory and its inventory records. The following information is available:
- Inventory at 1st Nov.            31,800     
- Sales for Nov.                      61,200
- Purchases for Nov.              41,200
- Inventory in good condition at 30th Nov.    21,400   
The standard gross profit percentage on sales is 20%.

Based on this information, what is the value of the inventory lost? ($5,700, $9,600, $2,640 or $2,710)

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