Question

Nomzi Traders sold furniture to a customer for R1 610 cash, the mark up on cost is 20%. Assuming Nomzi Traders uses a perpetual inventory system, is a registered VAT vendor and the VAT rate is 15%. (Round your answer off to the nearest Rand.) 

What will the cost of sales be for this transaction?

 

•  A. R1 190
•  B. R1 400
•  C. R1 167
•  D. R1 342
•  E. R1 369

Answer 1

$$\frac{1610}{1.2}=1342$$

•  D. R1 342