Case (a) Mr. David is seeking your advice as an accountant about the valuation of inventory and the adjustments to be made on the above situation. What amount should have to be included and excluded in the value of inventory and what amounts need to be charged as an expense?

Case (b) From the above information assess the cost of goods available for sale and its corresponding retail value and also the management is asking to find out the cost value and retail value of ending inventory. On the role of an accountant how would you arrive at the value of ending inventory for the company by using both cost value and retail value? Explain the steps to arrive at value of inventory elaborately.

out of this asset? Case a) Mr. David is the Managing Director and major Shareholder of Via Perfumes LLC, a wholesale perfume business. He has asked you to assist in the preparation of the year-end financial statements of the company. The inventories at the dose of business on 30 December, 2019 were valued at cost at $ 49,477. However, included in this balance were some items which had cost $ 8.200 but is estimated that they could now be sold for only 5 4800. The purchases figure includes items to the value of $ 2.000 which David took for personal use and for gifts to friends Case (b) In a trading company, beginning of the inventory has got the cost value of $ 72.000 and its retail value of inventory was 5 92,000. During the year the company has purchased inventories at a cost of $ 280,000 and but its retail value was $400,000. The freight charges for the purchase of the whole year amounted to $18,320 and cost of packing during the year was $ 10,880. The cost of goods available for sale $ 379,200 and its retail value was $ 492,000. The real value of the sales during the year was $ 398,000 Required: Case(a) Mr. David is seeking your advice as an accountant about the valuation of inventory and the adjustments to be made on the above situation. What amount should have to be included and excluded in the value of inventary and what amounts need to be charged as an expense? Case (b) From the above information assess the cost of goods available for sale and its corresponding real value and also the management is asking to find out the cost value and retail value of ending inventory. On the role of an accountant how would you arrive at the value of ending inventory for the company by using both cost value and retail value? Explain the steps to arrive at value of inventory elaborately out of this asset? Case a) Mr. David is the Managing Director and major Shareholder of Via Perfumes LLC, a wholesale perfume business. He has asked you to assist in the preparation of the year-end financial statements of the company. The inventories at the dose of business on 30 December, 2019 were valued at cost at $ 49,477. However, included in this balance were some items which had cost $ 8.200 but is estimated that they could now be sold for only 5 4800. The purchases figure includes items to the value of $ 2.000 which David took for personal use and for gifts to friends Case (b) In a trading company, beginning of the inventory has got the cost value of $ 72.000 and its retail value of inventory was 5 92,000. During the year the company has purchased inventories at a cost of $ 280,000 and but its retail value was $400,000. The freight charges for the purchase of the whole year amounted to $18,320 and cost of packing during the year was $ 10,880. The cost of goods available for sale $ 379,200 and its retail value was $ 492,000. The real value of the sales during the year was $ 398,000 Required: Case(a) Mr. David is seeking your advice as an accountant about the valuation of inventory and the adjustments to be made on the above situation. What amount should have to be included and excluded in the value of inventary and what amounts need to be charged as an expense? Case (b) From the above information assess the cost of goods available for sale and its corresponding real value and also the management is asking to find out the cost value and retail value of ending inventory. On the role of an accountant how would you arrive at the value of ending inventory for the company by using both cost value and retail value? Explain the steps to arrive at value of inventory elaborately