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Homework answers / question archive / At the start of January, Henry has an opening inventory of product X: 1,000 units at £10 per unit

At the start of January, Henry has an opening inventory of product X: 1,000 units at £10 per unit

Finance

At the start of January, Henry has an opening inventory of product X: 1,000 units at £10 per unit. During January, he purchased 4,000 units of product X at £10 per unit. Sales of product X for the period were 4,200 units at a selling price of £15 per unit. What is the gross profit for the month?

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ANSWER

OPENING INVENTORY = 1000 UNITS 10 PER UNIT

PURCHASES = 4000 UNITS 10 PER UNIT

TOTAL INVENTORY = 5000 UNITS AT 10 PER UNIT

SALES = 4200 AT 15 PER UNIT

GROSS PROFIT = 4200 X (15 - 10 )

= 21,000