The historical cost of sales figure for Pear Ltd for the year ended 31 December 2003 is calculated as follows:

Required:
Assuming that purchases occur evenly throughout the year, calculate the cost of sales adjustment for Pear Ltd for 2003.

Transcribed Image Text:

Opening inventory Purchases Closing inventory Cost of sales Price indices for inventory are as follows: Index at date of purchase of opening inventory Index at date of purchase of closing inventory Average index for 2003 Index at 31 December 2003 50,000 450,000 500,000 (70,000) 430,000 80 120 100 130