How do I calculate the closing inventory/Stock

Trainee Bookkeeper for NHS

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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)

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By tom123
30th May 2020 12:22

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

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Replying to tom123:
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By Russ Homer
30th May 2020 19:05

Cheers Tom,

Assuming the cost price per unit is: £1.705
And I have sold:2 out of 32 (Units on hand 29)
1.705x29=£49.45 (Closing Stock/inventory)

Are my workings correct?

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RLI
By lionofludesch
30th May 2020 13:41

Best to count the units you have left.

You can't discount the possibility of light fingers.

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Replying to lionofludesch:
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By paul.benny
30th May 2020 15:06

True.

But not in exam world (at least at this basic level).

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Replying to paul.benny:
RLI
By lionofludesch
30th May 2020 15:14

There's not enough information for an exam question.

We need to know either the selling price or the number of units sold.

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Replying to lionofludesch:
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By Russ Homer
30th May 2020 15:23

Selling price: £12.49
Units sold: 3/32

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Replying to lionofludesch:
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By Russ Homer
30th May 2020 15:23

Selling price: £12.49
Units sold: 3/32

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Replying to lionofludesch:
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By Russ Homer
30th May 2020 15:23

Selling price: £12.49
Units sold: 3/32

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Replying to Russ Homer:
RLI
By lionofludesch
30th May 2020 15:36

Quote:

Selling price: £12.49
Units sold: 3/32

What happened to the other £12.49 ?

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Replying to lionofludesch:
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By Russ Homer
30th May 2020 18:44

Apologies only 2 units sold out of 38

opening Stock £0
purchases £54.56 (1 unit = £1.705)
Stock Units: 32
sales £24.98
Number of Sales/2
No Sales/purchase returns £0
Selling Price £12.49
Carriage Inwards £5.05

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Replying to paul.benny:
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By Russ Homer
30th May 2020 18:45

This is the data:

opening Stock £0
purchases £54.56 (1 unit = £1.705)
Stock Units: 32
sales £24.98
Number of Sales/2
No Sales/purchase returns £0
Selling Price £12.49
Carriage inwards £5.05

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By Accountant A
15th Jun 2020 18:28

uygclu

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By SXGuy
30th May 2020 16:05

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

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Replying to SXGuy:
paddle steamer
By DJKL
30th May 2020 16:15

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.

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Replying to DJKL:
RLI
By lionofludesch
30th May 2020 16:17

There's a Year 5 Sums fail in there somewhere.

Great mark-up, though.

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Replying to lionofludesch:
paddle steamer
By DJKL
30th May 2020 16:31

Agreed, maybe they do something to the items like sew a designer label onto them before they are resold.

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Replying to DJKL:
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By SXGuy
30th May 2020 19:25

Your right I did miss that. Purely gave an example based on figures.

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Replying to SXGuy:
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By Russ Homer
30th May 2020 19:06

Sorry the amount sold is 2 not 3- how would the gross change?

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Replying to Russ Homer:
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By SXGuy
30th May 2020 19:26

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.

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Replying to SXGuy:
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By Russ Homer
30th May 2020 19:09

Also isnt 54.56 - 49.45 = 5.11

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Replying to Russ Homer:
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By SXGuy
30th May 2020 19:24

There were some rounding going on yes.

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