Value of Closing Stock Question


Q: Opening stock 80,000, purchases 160,000, sales 200,000. Gross profit 33%. Goods destroyed by fire 30,000. Received claim of 20,000.


What is the value of the closing stock?



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Answer to the Value of Closing Stock Question
by: Hanan (Israel)

The answer to the value of the closing stock question is:

$56,000

Sales $200,000 - Cost of Goods Sold = Gross Profit

Gross Profit = 33%
0.33 x Sales
= 0.33 x $200,000 = $134,000

Cost of Goods Sold = Sales $200,000 - Gross Profit $134,000 = $66,000

Closing Stock = Opening Inventories $80,000 + Purchases $160,000 - Cost of Goods Sold $66,000
- Goods destroyed by fire $30,000 - Claim $20,000

= $56,000

Closing Stock
by: backward

76000

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