P. Maradza's turnover for the year ended 31 May 2020 was $125 500. Opening inventory was $26 900, purchases were $81 200 and closing inventory was valued at $27 500. Calculate the gross profit for the year.

Model answer

$44 900

Also accepted: 44900, 44 900

Explanation

Cost of sales = 26 900+81 200-27 500 = 80 600. Gross profit = 125 500-80 600 = $44 900.

Derived from ZIMSEC Principles of Accounting 4051/2 Paper 2, November 2023, Q1

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