Lucas Wagg, trading as Fairlock Fashions, ends his financial year on 31 March. At 1 April...

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Lucas Wagg, trading as Fairlock Fashions, ends his financial year on 31 March. At 1 April 20X5 he had goods in inventory valued at $8,800. During the year to 31 March 20X6, he purchased goods costing $48,000. Fashion goods which cost $2,100 were still held in inventory at 31 March 20X6, and Lucas Wagg believes that these could only now be sold at a sale price of $400. The goods still held in inventory at 31 March 20X6 (including the fashion goods) had an original purchase cost of $7,600. Sales for the year were $81,400. Required Calculate the gross profit of Fairlock Fashions for the year ended 31 March 20X6. Lucas Wagg, trading as Fairlock Fashions, ends his financial year on 31 March. At 1 April 20X5 he had goods in inventory valued at $8,800. During the year to 31 March 20X6, he purchased goods costing $48,000. Fashion goods which cost $2,100 were still held in inventory at 31 March 20X6, and Lucas Wagg believes that these could only now be sold at a sale price of $400. The goods still held in inventory at 31 March 20X6 (including the fashion goods) had an original purchase cost of $7,600. Sales for the year were $81,400. Required Calculate the gross profit of Fairlock Fashions for the year ended 31 March 20X6.

Answer rating: 100% (QA)

Solution Inventory are valued l0 wer of Cost or Net Realisable ralue In ... View the full answer