How to calculate sales (video below)
Selena fixes prices to make a standard gross profit percentage on sales of 30%.
The following information for the year ended 31 January 20X5 is available to compute her sales total for the year.
| $ | ||
| Inventory: | 1 February 20X4 | 60,750 |
| 31 January 20X5 | 65,425 | |
| Purchases | 148,850 | |
| Purchases returns | 10,300 |
What is the sales figure for the year ended 31 January 20X5?
Answer
| Cost of sales | |
| $ | |
| Opening inventory | 60,750 |
| Purchases | 148,850 |
| Less: purchases returns | (10,300) |
| 199,300 | |
| Less: closing inventory | (65,425) |
| 133,875 |
Margin = (sale –cost)/sale = 30%
Sales = 133,875 x 100/70 = $191,250
Note: if you cannot see any videos above, please click this link @ https://youtu.be/b2QN0UaluiM