Hassan's purchases for the financial year ended 30 September 2019 were £375,000. At 30 September 2018, his closing inventory was £35,200 and his inventory at 30 September 2019 has been valued at £37,800. Purchase returns during the year amounted to £5,730 and discounts allowed by suppliers totalled up to £1,875. What is Hassan's cost of sales for the year ended 30 September 2019?

Question

Quizplus · Accepted Answer

Cost of sales = Purchases + Opening inventory - Closing inventory - Purchase returns - Discounts allowed by suppliers= 375,000 + 35,200 - 37,800 - 5,730 - 1,875= £364,795

Hassan's Purchases for the Financial Year Ended 30 September 2019