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)
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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