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WAEC 2024

Use the following information to answer this question Le Opening stock                 6,000 Sales                               180,000 Closing stock                   4,200 Mark-up is 33\(\frac{1}{3}\)% The value of purchases is

  1. ALe 139,200.
  2. BLe 135,000.
  3. CLe 133,200.
  4. DLe 127,200.

Explanation

Cost of Goods Sold (COGS) = Sales / (1 + Mark-up) = 180,000 / (1 + 1/3) = Le 135,000. Since COGS = Opening Stock + Purchases - Closing Stock, Purchases = COGS - Opening Stock + Closing Stock = 135,000 - 6,000 + 4,200 = Le 133,200.

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