The following information is available for the years 2010, 2011 and 2012: The inventory valuations used above

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The following information is available for the years 2010, 2011 and 2012:

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The inventory valuations used above at the end of 2010 and at the end of 2011 were inaccurate. The inventory at 31 December 2010 had been under-valued by £1,000, whilst that at 31 December 2011 had been over-valued by £3,000. Required:

(a) Give the corrected figures of gross profit for each of the years affected by the errors in inventory valuation.

(b) Using the figures in the revised trading accounts, calculate for each year: (i) the percentage of gross profit to sales, and (ii) the rate of turnover of inventory.

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Frank Woods Business Accounting

ISBN: 9780273759287

12th Edition

Authors: Frank Wood. Sangster, Alan

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