Sai Baba made sales of ₦10,000 having computed his gross profit % to sales to be 20. His opening stock was ₦250 and ending stock is ₦200. Calculate his purc...

Answer Details

The gross profit percentage of sales would be

20% x ₦10,000 = ₦2000

If cost of sales + gross profit = ₦10,000 = ₦2000

:. ₦8000 + ₦2000 = ₦10,000

If cost of goods available for sales less closing stock

= cost of sales

:. ₦8200 + ₦200 = ₦8000

Hence; cost of goods available for sale = opening stock + purchases

:. ₦8200 = ₦250 + A

= ₦8200 – ₦250

=₦7950