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John Moffat.
John Moffat.-
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yusra97
- Topics: 66
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Jameela was too busy on 30th september 2008 to count the inventory. She finally counted the inventory on 3 october 2008 and valued this at a cost of $7800. Between 30 september 2008 and 3rd october jameela purchased material costing 135 and sold dresses costing 290 for 500. Furthermore jameela discovered that included within the inventory were items at a cost of 1000 that had a net realizable of 800. Jameela has not posted the closing inventory for the year.
sir my answer is coming wrong..whereas the answer is 7755
no working given in the answer sheet
so i am doing it like this
7800+135-290+800
8445
John Moffat
- Topics: 57
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We need to know what the inventory was on 30 September but we only know what it is on 3 October. There were purchases between these dates which would have made the inventory on 3 October higher – so these need to be removed. There were sales between these dates which would have made the inventory lower, so these need to be added.
Adjusting for these makes the inventory at 30 September 7,800 – 135 + 290 = 7,955
We now need to adjust for the inventory that had cost 1,000 but has a NRV of 800. The are currently included in the total at 1,000, but should only be included at 800. So the value of inventory needs reducing by the difference of 200.
7,955 – 200 = 7,755
yusra97
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