A trader’s opening inventory was reported as £38,600. His purchases during the year inclusive of VAT were £569,875. He reports that a fifth of goods purchased during the year remains unsold by the year-end. The cost of sales for the year and the closing inventory reported as an asset will be:

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Cost of sales a £426,600 b £426,600 c£494,500 d £418,880 Closing inventory £113,975 £97,000 £113,975 £104,720