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Chash_jpc
Jan 26, 2010, 10:41 AM
If Purchases is 100000, Sales is 90000, margin is 20% on cost. What is the closing stock?

Chash_jpc
Jan 26, 2010, 10:41 AM
If Purchases is 100000, Sales is 90000, margin is 20% on cost. What is the closing stock?

morgaine300
Jan 26, 2010, 07:16 PM
Not enough info.

rehmanvohra
Jan 26, 2010, 11:56 PM
If margin is 20% on cost, then the sales price must be equal to 100 + 20 = 120. Based on this the cost of sales will be 90000/1.20 = 75000, and if there is no opening inventory the closing inventory will be 100000 - 75000 =25000.

morgaine300
Jan 27, 2010, 11:08 PM
Based on the assumption there was no beginning inventory. (Unless I can tell something has been copied verbatim, I never quite trust that's really all there is.)