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jamela was too busy on 30 Sept 2008 to count the inventory. she finally counted the inventory on 3 DEC 2008 and valued at a cost $7800. between 30 Sept and 3rd Oct jamela purchased material costing 135 and sold dresses costing 290 for 500. furthermore jamela discovered that included within the inventory were items at a cost of 1000 that had a net realizable of 800. jamela has not posted the closing inventory for the year. CALCULATE THE VALUE OF CLOSING STOCK?
Do not simply set me a test question and expect me to provide an answer. You must have an answer in the same book in which you found the question and so you should ask about whatever it is in the answer that you are not clear about, and then I will explain.
You know what the cost of the inventory was on 3 December, and so to calculate what the cost was on 30 September you need to adjust backwards for what happened between those dates.
To the 3 December figure, you need to add back any sales that had been made (obviously at cost) and subtract any purchases that had been made. With regard to the items with the lower NRV, then the inventory needs reducing by 200 to reduce the valuation to the lower of cost and NRV.I assume that you have watched all my free lectures on inventory? The lectures are a complete free course and cover everything needed to be able to pass the exam well.
That is the correct answer (7755).
Have you tried doing what I wrote before? Add back the cost of the sales, subtract the purchases, and then reduce by 200 for the reason I wrote.
yes i did and i got the ans there was some mistake in the paper with the numbers that’s why i was not getting the correct ans but thank you sir.
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