Zainab, a cosmetics retailer in Kano, maintains single-entry accounting records. For the y… — JAMB UTME

Zainab, a cosmetics retailer in Kano, maintains single-entry accounting records. For the year ended 31st December 2025, her records showed total sales of $\text{₦}120,000$ , an opening inventory of $\text{₦}18,000$ , and total purchases of $\text{₦}95,000$ . If she earns a uniform mark-up of $33\frac{1}{3}\%$ on cost, what is the estimated value of her closing inventory as at 31st December 2025?

A
$\text{₦}33,000$
$\text{₦}23,000$ Cevap
C
$\text{₦}5,000$
D
$\text{₦}13,000$

Cevap

\text{₦}23,000

The correct answer is derived by first converting the mark-up of

33\frac{1}{3}\%

(

\frac{1}{3}

on cost) to a margin of

25\%

(

\frac{1}{4}

on sales). Subtracting the gross profit of

\text{₦}30,000

(

25\%

\text{₦}120,000

) yields a Cost of Goods Sold of

\text{₦}90,000

. Subtracting

\text{₦}90,000

from total goods available for sale (

\text{₦}18,000 + \text{₦}95,000 = \text{₦}113,000

) gives an estimated closing inventory of

\text{₦}23,000

Adım Adım Çözüm

Convert mark-up on cost to margin on sales

\text{Margin} = \frac{\text{Mark-up}}{1 + \text{Mark-up}} = \frac{1/3}{1 + 1/3} = \frac{1}{4} = 25\%

Sales revenue is given, so profit percentage must be expressed relative to selling price (margin).

Calculate Gross Profit and Cost of Goods Sold (COGS)

\text{Gross Profit} = 25\% \times \text{₦}120,000 = \text{₦}30,000

;

\text{COGS} = \text{₦}120,000 - \text{₦}30,000 = \text{₦}90,000

Cost of Goods Sold equals Sales Revenue minus Gross Profit.

Calculate Closing Inventory using the COGS formula

\text{Goods Available for Sale} = \text{₦}18,000 + \text{₦}95,000 = \text{₦}113,000

;

\text{Closing Inventory} = \text{₦}113,000 - \text{₦}90,000 = \text{₦}23,000

Closing Inventory is the difference between total goods available for sale and Cost of Goods Sold.

Anahtar Kavram

Application of Mark-up and Margin in Estimating Cost of Goods Sold and Stock

Tahmini Süre:1m 30s

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