Sales for the year were £222,000. Gross profit was £60,000, purchases were £150,000 and opening inventory was £51,000.
The value of closing inventory is:

Question

Quizplus · Accepted Answer

To find the closing inventory, use the formula: Opening Inventory + Purchases - Cost of Goods Sold (COGS) = Closing Inventory. COGS is Sales - Gross Profit, which is £222,000 - £60,000 = £162,000. Therefore, £51,000 + £150,000 - £162,000 = £39,000.

Sales for the Year Were £222,000