Accounting paper 3 urgent help please .

[Ghayth]

Accounting paper 3 November 2008 Question 3 Part C
I have sales of 60 000 , and Cost of goods of 54 700 but I have no idea how to use the Mark up to find the Cost of goods when the Gross profit is missing ..
Please reply quickly .
Thank you very much

[saiki]

i duno how to do it in tradin a/c

the way i got is =

1. u get sales = 60000
2. put COGS = x
3. hence GP = 60000-x

4. since (GP/COGS) *100 = mark up, ((60000-x)/(x))*100=20
(60000-x)/x=0.2
60000-x=0.2x
60000=1.2x
x=50000

5. since COGS = 50000, n without removing closing stock u get 54700, it means closing stock = 4700, henc u just write closing stock = (4700) n thus get COGS as 50000 n GP as 10000....

if there is a simpler way, plz let me noe

[Ghayth]

Alright thank you so much
When you do it in a trading account its the same thing you still have to do those calculations you just have to put the figures you got as if you are drawing a normal Trading account so just get those figures you got now and put them in a trading account and you will be good , thanks again , +rep .