Mr Ojo gives you the following information on 31st July 2017 Opening Stock 7,000 Closing
FINANCIAL
JAMB 2019
Mr Ojo gives you the following information on 31st July 2017
Opening Stock 7,000
Closing Stock 12,000
Purchases 60,000
Expenses 4,500
Uniform margin of 33 \(\frac{1}{3}\) %
You are required to calculate the sales
- A. #55,000
- B. #82,500
- C. #27,500
- D. #50,000
Correct Answer: B. #82,500
Explanation
Firstly, convert margin to mark-up i.e,
33 \(\frac{1}{3}\)%
= \(\frac{100}{300}={1}{3-1}={1}{2}\) or 50%
Secondly, Cost of goods sold = Opening stock + Purchases - Closing Stock
C.p = 7,000 + 60,000 - 12,000
C.p = ?55,000
Thirdly, Profit = 50% × 55,000 = #27,500
Therefore,
Sales = Cp + P
⇒ 55,000 + 27,500 = #82,500
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