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Question:
The inventory value for the financial statements of a Daletree Co for the year ended
31 December 2007 was based on an inventory count on 4 January 2008, which gave
a total value of $314,400.
Between the 31 December and 4 January 2008, the following transactions took place:Purchases of goods $8,400
Sales of goods (value shown at cost) $9,600
Goods returned to supplier $1,000What adjusted figure should be included in the financial statements for
inventories at 31 December 2007?A $316,600
B $314,400
C $314,200
D $307,800I am not sure how to work this out.
Can someone please assist me.
Thank you.
Kind Regards
Jegan
You need to work backwards from the 314,400 which was the value at 4 January in order to find out what the inventory was at 31 December.
So you need to subtract the purchases made during the period, add the sales (at cost), and add the returns to the supplier.
Thank you Sir. You have been exceptionally helpful.
I will be sitting my F3 exam shortly. Just got to master Statement of Cashflows and Consolidated Statements.
The other topics I am fairly confident with. I have done the LSBF Revision Kit 3 times and some BPP Revision Kit questions. Done one ACCA Practice Test and got 58%.
John, Sir have you got any tips for my final preparation of F3?
Thank you.
Jegan
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