Laser Stores uses the perpetual inventory system to account for goods. They mark their goods up

Question:

Laser Stores uses the perpetual inventory system to account for goods.

• They mark their goods up by 25% on cost.

• VAT is charged at 14%.

• Laser Stores sold goods to the value of R3 078.


You are required to:

1. a. Calculate the VAT output amount.

b. Calculate the cost of goods sold.

2. Use the information, but assume that the R3 078 represents sales at a 10% discount on selling price.

a. Calculate VAT payable.

b. Calculate the normal marked price.

c. Calculate the cost of goods sold.

d. Calculate the gross profit on these goods.

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Related Book For  answer-question

Fundamental Accounting

ISBN: 9781485112112

7th Edition

Authors: David Flynn, Carolina Koornhof, Ronald Arendse, Anna C. E. Coetzee, Edwardo Muriro, Louise Christel Posthumus, Louise Mancy Smit

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