Value of Closing Stock Question


Q: Opening stock 80,000, purchases 160,000, sales 200,000. Gross profit 33%. Goods destroyed by fire 30,000. Received claim of 20,000.


What is the value of the closing stock?


Comments for Value of Closing Stock Question

Click here to add your own comments

Answer to the Value of Closing Stock Question
by: Hanan (Israel)

The answer to the value of the closing stock question is:

$56,000

Sales $200,000 - Cost of Goods Sold = Gross Profit

Gross Profit = 33%
0.33 x Sales
= 0.33 x $200,000 = $134,000

Cost of Goods Sold = Sales $200,000 - Gross Profit $134,000 = $66,000

Closing Stock = Opening Inventories $80,000 + Purchases $160,000 - Cost of Goods Sold $66,000
- Goods destroyed by fire $30,000 - Claim $20,000

= $56,000
Closing Stock
by: backward

76000

Click here to add your own comments

Return to Ask a Question About This Lesson!.









© Copyright 2009-2021 Michael Celender. All Rights Reserved. 
Click here for Privacy Policy.