Calculating closing inventory


Assignment:

Jack's mark-up is 40% on cost of goods sold. His average inventory during the year was £17,000. Draw up a statement of profit or loss for the year ending 31 March 2018.

Inventory 1 April 2017                                               14,000
Purchases                                                                  82,000

(a) Calculate the closing inventory as at 31 March 2018.
(b) State the total amount of profit and loss expenditure Jack must not exceed if he is to maintain a net profit on sales of 8%.

Your answer must be, typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format.

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Accounting Basics: Calculating closing inventory
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