Question

opening inventory is rs.100000 sales 300000, selling price is fixed so that the profit is 1/3 od cost. closing inventory is rs.275000. the total amount of purchase?

Answer 1

Answer:

400,000

Explanation:

Purchases

Closing inventory 275,000

(-) Opening inventory 100,000

+ Cost of goods sold 225,000 (300,000 x 3/4)

= 400,000