[robelandat]

The question is from Kaplan Exam Kit (FA2019) question number 27. The only calculation provided is for the CO2 emissions percentage.

[robelandat]

True, but we used 3000 units when the actual production was 3200 units. Why did we calculate it using 3000 units instead of 3200 units?

[robelandat]

Hello,

I attempted the question, and this is what I got:
Inventory 36,000+2,700-6,000=32,700
Revenue 339,650-7,800=331,850
Cost of sales 207,750-2,700+6,000=211,050

The model answer shows:
Inventory 39,300
Revenue 339,650
Cost of sales 206,950

Why are we deducting $2,700 and adding $6,000 to inventory?

Thanks

[robelandat]

Hello,

That’s exactly what I got. However, the model answer shows that the cash in transit is $1,200.
Dr Cash $1,200 Cr Receivables $1,200

Thanks again.

[robelandat]

Thank You Very Much! 🙂

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