Mr Ojo gives you the following information on 31st July 2017

Opening Stock 7,000

Closing Stock 12,000

Purchases 60,000

Expenses 4,500

Uniform margin of 33 \(\frac{1}{3}\) %

You are required to calculate the sales

  • A #55,000
  • B #82,500
  • C #27,500
  • D #50,000
jamb 2019accounting

The correct answer is B. #82,500

Firstly, convert margin to mark-up i.e,

33 \(\frac{1}{3}\)%

= \(\frac{100}{300}={1}{3-1}={1}{2}\) or 50%

Secondly, Cost of goods sold = Opening stock + Purchases - Closing Stock

C.p = 7,000 + 60,000 - 12,000

C.p = ₦55,000

Thirdly, Profit = 50% × 55,000 = ₦27,500

Therefore,

Sales = Cp + P

⇒ 55,000 + 27,500 = ₦82,500

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