A wholesale merchant effects his sales at cost plus 20%. His accounting period ended on 31 March 2011 but he was able to ascertain the cost of his unsold goods as £482,800 when he conducted a physical inventory on 5 April. Assuming that the remainder of information is as stated in each of the following alternative circumstances, ascertain the cost of ‘closing’ inventory as at 31 March:

(a) Purchases and sales, during the five days since 31 March, were £78,400 and £58,800 respectively. The cost of packing material at £4,500 and £800, being the cost of stationery remaining unused, has been included in the inventory along with £124, the cost of spark plugs acquired for vehicle maintenance

(b) During the five days since 31 March purchases were £84,200 though goods costing £5,400 did not arrive till 7 April. Sales were £95,700, but goods invoiced for £4,500 were delivered to customers after 6 April

(c) Purchases and sales during the five days since 31 March were £79,400 and £105,300 respectively. An inventory sheet total has been carried forward from one page to another as £342,800 instead of £324,800. 48 units of an item were stated as £300 each whereas the real cost of these items was £300 per dozen

(d) Purchases and sales during the five days since 31 March were £82,400 and £97,200 respectively. As at 31 March goods invoiced to customers at £37,350 were with customers, on approval. A third of these goods were returned by the customers on 4 April

Transcribed Image Text:

w £457,776 x £458,576 X y £507,024 Z z £447,976