Day: April 27, 2019

The following information concerns a retailing firm.

• Sales during July – £8,200
• Purchases during July – £6,400
• Stock at 1 July – £1,300
• Stock at 31 July – £900
• Carriage inwards on July purchases – £200

The firm’s cost of sales for July is…?

Select ONE answer:

1. £6,200
2. £6,800
3. £7,000
4. None of the above.

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

• Stock at 1 July                                            £1,300
• Purchases during July                             + £6,400
• Carriage inwards on July purchases    + £200
• Stock at 31 July                                          – £900
• Cost of sales for July                                 = £7,000

 

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