Thank you for the answer you provided but I don know how you got to:
Increase cost of sales by the pup (11,250 + 6,000) = 17,250 ??
What I did - was I got the 716 but added 15k (diff in inventory 45-30) to get to 731-
Ask the Tutor ACCA FR
F7 Chapter 10 Q3
10y ago#1Forget the difference in inventory!
At the moment inventory is NOT being valued at the lower of cost and net realisable value
We need to calculate the pups in inventory in both companies
The solution has nothing at all to do with 15k (diff in inventory 45-30)!
Forget that you ever thought that!
Do the pup calculations and then, if you're still not sure, come back to me again
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