A retailer of designer menswear reports as stated on the right. The closing inventory includes £30,000 being the cost of 200 pairs of trousers damaged in storage. If repaired at a cost of £40 a pair, the trousers may be sold for £100 a pair. The gross profit for the year and the inventory value in the year-end Statement of financial position would be:

(a) Gross profit £101,000 and Inventory value £248,200

(b) Gross profit £151,600 and Inventory value £230,200

(c) Gross profit £83,000 and Inventory value £230,200

(d) Gross profit £83,000 and Inventory value £248,200

Transcribed Image Text:

Opening inventory £184,800 Purchases £752,400 Sales £858,600 Closing inventory £248,200