Answered step by step
Verified Expert Solution
Question
1 Approved Answer
During 2019, East Bhd sold inventories to North Bhd at invoice value of RM150,000. The goods cost RM125,000 and 10% of these goods were still
- During 2019, East Bhd sold inventories to North Bhd at invoice value of RM150,000. The goods cost RM125,000 and 10% of these goods were still in the inventory of North Bhd at 31st December 2019.
- On 1st December 2019, South Bhd sold inventories to North Bhd at invoice value of RM20,000. The profit was RM2,000 and 50% of these goods were still in the inventory of North Bhd at 31st December 2019.
Unrealised profit in inventory
From East Bhd to North Bhd 150,000
Unrealised profit in inventory (150000*0.1 ) 15,000
South Bhd to North Bhd 20,000
Unrealised profit in the inventory 20000*0.5 10,000
How to i calculated the unrealized profits?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started