Final answer:
To compute the cost of sales and ending inventory in Business, you need to understand the concepts of merchandise balance and current account balance.
Step-by-step explanation:
To compute the cost of sales and ending inventory, you need to understand the concept of merchandise balance and current account balance. The merchandise balance refers to the total cost of goods purchased during a period, while the current account balance represents the total sales revenue received during the same period.
To calculate the merchandise balance, you sum up the cost of each item purchased during the period. For example, if the closing stock prices are: 8.625, 30.25, 27.625, and so on, you would add them together to get the merchandise balance.
To calculate the current account balance, you need to know the total sales revenue generated during the same period. You would add up all the sales revenue and subtract any returns or discounts to get the current account balance. That's how you would compute the cost of sales and ending inventory.