I am trying to calculate closing stock;
- I had no opening Stock £0
- I had purchases £54.56 (1 unit = £1.705)
- I have sales of £24.98
- No Sales/purchase returns
Would closing stock be purchase price - sales
Any help would be appreicated traininig for my first accoutancy exam.
Replies (21)
Please login or register to join the discussion.
Closing stock is the number of units on hand x the cost price.
The cost price could be first in first out, or average price.
Sales minus purchases is gross profit, after you have adjusted for stock
Best to count the units you have left.
You can't discount the possibility of light fingers.
There's not enough information for an exam question.
We need to know either the selling price or the number of units sold.
Sales 24.98
Opening stock 0
Plus Purchases 54.56 (32 @ 1.705)
Less closing stock 49.45 (3/32 sold or 29 left if you're picky)
= 5.12
Gross Profit 19.86
But you missed Lion's point above that someone has possibly half inched a unit, sales represent two units sold at the £12.49 SP we are given but 3 out of 32 have gone out of purchases so someone has possibly had it away on their toes or there is something adrift with the info given.
Agreed, maybe they do something to the items like sew a designer label onto them before they are resold.
Are you seriously asking me to explain how the gross would change if there were 2 sold not 3, after I gave a pretty detailed example of how the figures were arrived at based on 3 sold?
If you can't work that out, I suggest you train in another job.