Missing inventory or drawings

The mark-up tells you what the goods sold must have cost. That tells you how much inventory should be left.

• Work out cost of sales from the sales
• Add opening inventory and purchases: the goods there were to sell
• Take away cost of sales: the inventory that should be left
• Compare it with the inventory actually counted

Wren Gifts is broken into on the last night of its year. Sales for the year were £54,000, at the usual mark-up of 50% on cost. Opening inventory was £6,000 and purchases were £38,000.

The count after the break-in finds inventory of £5,500.