A company has 100 units in inventory at the start of the year valued at 1,000. During

Question:

A company has 100 units in inventory at the start of the year valued at £1,000.
During the year it purchases a further 500 units for £5,000 and sells 400 units for £8,000.
Required
a. What is the quantity and value of the closing inventories?
b. What is the gross profit for the year?
c. Prepare the trading account for the year.