Rufford presents you with the following information for the year to 31 March 2017: He is not

Question:

Rufford presents you with the following information for the year to 31 March 2017:

He is not sure how to value the inventory as at 31 March 2017. Three methods have been suggested. They all result in different closing inventory values, namely:

Required:

(a) Calculate the effect on gross profit for the year to 31 March 2017 by using each of the three methods of inventory valuation.

(b) State the effect on gross profit for the year to 31 March 2017 if Method 1 is used instead of Method 2.

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Accounting For Non Accounting Students

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7th Edition

Authors: John R. Dyson

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Question Posted: Oct 10, 2022 12:43 AM

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Rufford presents you with the following information for the year to 31 March 2017: He is not

Question:

Purchases Purchases returns Sales Sales returns Inventory at 1 April 2016 £ 48 000 3 000 82 000 4 000 4 000

Step by Step Answer:

a To calculate the effect on gross profit we need to calculate the cost o...View the full answer

Accounting For Non Accounting Students

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