Month: January 2019

The following information relates to a business’s trading during the month of July.

• Gross profit for the month – £35,000
• Expenses for the month – £18,000
• Net profit for the month – equals 17% of the sales for the month

The business’s Cost of Sales for the month of July is?

Select ONE answer:

1. £52,000
2. £53,000
3. £65,000
4. £100,000

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Accounting KS5 classes.

The answer is 3
Net profit = Gross profit – Expenses = £35,000 – £18,000 = £17,000
£17,000 = 17% of sales
Therefore, Sales = £17,000 / 17 * 100 = £100,000
Cost of Sales = Sales – Gross Profit = £100,000 – £35,000 = £65,000

This work is licensed under a Creative Commons Attribution 4.0 International License.

If the total of a business’s sales for the month of May is £400,000 and its gross profit is equal to 20% of its Cost of Sales, then its Cost of Sales for May was ………… ?

Select ONE answer:

1. £66,667
2. £80,000
3. £320,000
4. £333,333

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Accounting KS5 classes.

The answer is 4
Sales – Cost of Sales = Gross Profit
Sales- Cost of Sales = 20% of the Cost of Sales
£400,000 – Cost of Sales = 20% of the Cost of Sales
£400,000 = Cost of Sales + 20% of the Cost of Sales
£400,000 = 120% of the Cost of Sales = Cost of Sales * 1.2
Cost of Sales = £400,000 / 1.2 = £333,333

This work is licensed under a Creative Commons Attribution 4.0 International License.

If the total of a business’s sales for the month of May is £300,000 and its gross profit is equal to 50% of its Cost of Sales, then its Cost of Sales for May was ………… ?

Select ONE answer:

1. £100,000
2. £150,000
3. £225,000
4. £200,000

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Accounting KS5 classes.

The answer is 4
Sales – Cost of Sales = Gross Profit
Sales- Cost of Sales = 50% of the Cost of Sales
£300,000 – Cost of Sales = 50% of the Cost of Sales
£300,000 = Cost of Sales + 50% of the Cost of Sales
£300,000 = 140% of the Cost of Sales = Cost of Sales * 1.5
Cost of Sales = £300,000 / 1.5 = £200,000

This work is licensed under a Creative Commons Attribution 4.0 International License.

If the total of a business’s sales for the month of May is £400,000 and its gross profit is equal to 25% of its Cost of Sales, then its Cost of Sales for May was ………… ?

Select ONE answer:

1. £80,000
2. £100,000
3. £300,000
4. £320,000

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Accounting KS5 classes.

The answer is 4
Sales – Cost of Sales = Gross Profit
Sales- Cost of Sales = 25% of the Cost of Sales
£400,000 – Cost of Sales = 25% of the Cost of Sales
£400,000 = Cost of Sales + 25% of the Cost of Sales
£400,000 = 125% of the Cost of Sales = Cost of Sales * 1.25
Cost of Sales = £400,000 / 1.25 = £320,000

This work is licensed under a Creative Commons Attribution 4.0 International License.

If the total of a business’s sales for the month of May is £300,000 and its gross profit is equal to 25% of its Cost of Sales, then its Cost of Sales for May was ………… ?

Select ONE answer:

1. £60,000
2. £75,000
3. £225,000
4. £240,000

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Accounting KS5 classes.

The answer is 4
Sales – Cost of Sales = Gross Profit
Sales- Cost of Sales = 25% of the Cost of Sales
£300,000 – Cost of Sales = 25% of the Cost of Sales
£300,000 = Cost of Sales + 25% of the Cost of Sales
£300,000 = 125% of the Cost of Sales = Cost of Sales * 1.25
Cost of Sales = £300,000 / 1.25 = £240,000

This work is licensed under a Creative Commons Attribution 4.0 International License.