O-LevelAccountingAnalysis and interpretation7707/22 · May/June 2010 · Q413 Marks
Paula Lim supplied the following information relating to her financial year ended 30 April 2010. $ Revenue (sales) 250000 Inventory (stock) 1 May 2009 10000 Inventory (stock) 30 April 2010 25000 Gross profit to sales 40% Profit for the year (net profit) to sales 8% REQUIRED Calculate the following for the year ended 30 April 2010. Show all your workings.
- (a)Cost of sales[3]
- (b)Raw materials (purchases)[4]
- (c)Expenses[3]
- (d)Rate of inventory (rate of stock) turnover[3]
Mark scheme
Marking points from the official mark scheme (May/June 2010). The mark or mark type is shown in brackets.
- [0] (a) Sales $250 000
- [0] (a) Less 40% Gross profit $100 000
- [3] (a) Cost of sales $150 000
- [0] (b) Opening stock $10 000
- [2] (b) Purchases $165 000 (2)of
- [1] (b) Closing stock $25 000
- [1] (b) Cost of sales $150 000 (1)of
- [0] (c) Gross profit $100 000
- [3] (c) Expenses $80 000
- [0] (c) Net profit $20 000
- [0] (d) Cost of goods sold / Average inventory (stock)
- [3] (d) 150 000 (of) / ((10 000 + 25 000)/2) = 8.57 times (3)of
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