Paper 2 · June 2018 · Financial Statements
Maria's opening inventory on 1 January 2015 was $54,400 and her closing inventory on 31 December 2015 was $35,200. Her credit purchases for the year were $364,800, and she made no cash purchases of goods for resale. Calculate her cost of sales for the year ended 31 December 2015.
Model answer
384000
Also accepted: $384000
Explanation
Cost of sales = Opening inventory $54,400 + Purchases $364,800 − Closing inventory $35,200 = $384,000.
Derived from ZIMSEC Accounting Paper 2, June 2018, Q1