ICAEW AF · Chapter 9 · Question 9 of 9
The following figures relate to a business's year: Opening inventory £12,600 Purchases £84,300 Carriage inwards £1,900 Carriage outwards £2,700 Purchase returns £3,100 Closing inventory £14,250 What is the cost of sales?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) £81,450
Explanation
Cost of sales = opening inventory + purchases + carriage inwards - purchase returns - closing inventory = £12,600 + £84,300 + £1,900 - £3,100 - £14,250 = £81,450. Carriage inwards is part of the cost of acquiring goods, but carriage outwards is a distribution cost and is excluded.
More Inventory MCQs
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