ACCA F3 Incomplete 2
A fire on 30 September 2014 destroyed some of the company's inventory and its inventory records. The following information is available:
| $ | |
| Opening inventory | 12,345 |
| Sales | 117,000 |
| Purchases | 315,604 |
| Inventory in good condition | 55,272 |
| Standard gross profit percentage on sales is | 10 |
Based on this information, what is the value of the inventory lost?
SUGGESTED SOLUTIONS
Cost of sales = Sales X (1- ((gross profit )/100))
Cost of sale = 117,000 X (1- ((10/100))
Cost of sale =105,300
| $ | |
| Opening inventory | 12,345 |
| Plus Purchases | 315,604 |
| Minus Cost of Sale | ( 105,300) |
| =closing balance | 222,649 |
| Minua Inventory in good condition | (55,272) |
| Value of Inventory lost | 167,377 |