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5.1 Cost of Sales
5.2 Gross Profit
5.3 Actual Mark-up \% Achieved

INFORMATION:
Totals extracted from the records on 29 February 2020, the end of the financial year.

\begin{tabular}{|l|c|}
\hline
& [tex]$R$[/tex] \\
\hline
Opening stock & 56,000 \\
\hline
Purchases (cash and credit) & 342,000 \\
\hline
Carriage on purchases & 12,700 \\
\hline
Customs duty & 5,500 \\
\hline
Cash sales & 280,000 \\
\hline
Credit sales & 425,000 \\
\hline
Debtors allowances & 21,000 \\
\hline
\end{tabular}

Additional Information:

The following have not yet been taken into account:
(a) Goods returned to creditors, R900.
(b) Carriage on purchases not recorded, R150.
(c) A physical stock count after taking all of the above into account revealed trading stock on hand, R48,000.


Sagot :

Sure, let's solve each part step-by-step.

### 5.1 Cost of Sales
To determine the cost of sales, we need to calculate the net purchases and then adjust for the change in the stock.

Step 1: Calculate Net Purchases

1. Purchases: R342,000
2. Goods returned to creditors: R900 (a reduction in purchases)
3. Carriage on purchases: R12,700
4. Additional carriage on purchases not recorded: R150
5. Customs duty: R5,500

Net Purchases = Purchases - Goods returned to creditors + Carriage on purchases + Additional carriage on purchases + Customs duty
Net Purchases = 342,000 - 900 + 12,700 + 150 + 5,500
Net Purchases = 359,450

Step 2: Calculate Cost of Sales

1. Opening Stock: R56,000
2. Net Purchases: R359,450 (calculated above)
3. Closing Stock: R48,000

Cost of Sales = Opening Stock + Net Purchases - Closing Stock
Cost of Sales = 56,000 + 359,450 - 48,000
Cost of Sales = 367,450

So, the Cost of Sales is R367,450.

### 5.2 Gross Profit
To calculate the gross profit, we need the total sales and then subtract the cost of sales from it.

Step 1: Calculate Total Sales

1. Cash Sales: R280,000
2. Credit Sales: R425,000

Total Sales = Cash Sales + Credit Sales
Total Sales = 280,000 + 425,000
Total Sales = 705,000

Step 2: Calculate Gross Profit

Gross Profit = Total Sales - Cost of Sales
Gross Profit = 705,000 - 367,450
Gross Profit = 337,550

So, the Gross Profit is R337,550.

### 5.3 Actual Mark-Up Percentage Achieved
Finally, to find the actual mark-up percentage achieved, we use the following formula:

[tex]\[ \text{Actual Mark-Up Percentage} = \left( \frac{\text{Gross Profit}}{\text{Cost of Sales}} \right) \times 100 \][/tex]

Actual Mark-Up Percentage = [tex]\(\left(\frac{337,550}{367,450}\right) \times 100\)[/tex]

Actual Mark-Up Percentage ≈ [tex]\(91.86\%\)[/tex]

So, the Actual Mark-Up Percentage Achieved is approximately 91.86%.