If the opening stock is 5% of sales. calculate the purchases
- N95,600
- N95,000
-
N90,600
- N85,000
The correct answer is: C
Explanation
opening stock + cost of goods sold - closing stock = purchase
Remember COGS was given as;
cost of goods sold = sales - profit (10% of sales)
100,000 - 10,000 = 90,000
Hence we have;
purchase = 5,000 + 90000 - 5,600 = 90,600