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Complete the trading account of Blake Ltd for the year ended 31/12/2018: Trading Account of Blake Ltd for the year ended 31/12/2018: € € Sales Less cost of sales Opening stock 75,000 Purchases 450,000 Less closing stock 115,000 Cost of sales Gross profit - Junior Cycle Business Studies - Question Question 1 - 2019
Question Question 1
Complete the trading account of Blake Ltd for the year ended 31/12/2018: Trading Account of Blake Ltd for the year ended 31/12/2018: € € Sales ... show full transcript
Worked Solution & Example Answer:Complete the trading account of Blake Ltd for the year ended 31/12/2018: Trading Account of Blake Ltd for the year ended 31/12/2018: € € Sales Less cost of sales Opening stock 75,000 Purchases 450,000 Less closing stock 115,000 Cost of sales Gross profit - Junior Cycle Business Studies - Question Question 1 - 2019
Step 1
Less cost of sales
Answer
To calculate the cost of sales, we need to determine the total cost of goods available for sale, which is the sum of opening stock and purchases, and then subtract the closing stock.
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Calculate the total cost of goods available for sale:
Total Cost of Goods Available for Sale = Opening Stock + Purchases
= €75,000 + €450,000
= €525,000
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Subtract the closing stock to find the cost of sales:
Cost of Sales = Total Cost of Goods Available for Sale - Closing Stock
= €525,000 - €115,000
= €410,000
Step 2