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PART 3 Woodcraft Ltd manufactures and sell rated for TOT VAT purposes. At 30/6/20% closing stock was valued at 297.240. lee Future. It is standard

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PART 3 Woodcraft Ltd manufactures and sell rated for TOT VAT purposes. At 30/6/20% closing stock was valued at 297.240. lee Future. It is standard their draft accounts showed that During the course of the audit the following was discovered: 1 The closing stock includes 3 desks which are below specification standards. The total cost of producing these denke was ei, 700. Woodcraft Ltd proposes to sell the desks at 500 each. 2 Some completed furniture which was included in closing stock at a cost of e3,800 was partially damaged by damp. An estimated 350 will have to be spent to restore the furniture to its saleable condition at which time it is expected that it can be sold for 4,200. 3 Free samples of office chairs sent to Woodcraft Ltd by a supplier were included in closing stock at their catalogue price of 650. 4 Raw materials costing 2,200 plus 20% VAT, were dispatched by a supplier on 29/6/20xo. As the materials were not received until 2/7/20xo they were not included in closing stock. 5 Furniture which cost 2,900 to manufacture and which had a selling price of 3, 450 was sent to a customer on a sale or return basis. This furniture was included in closing stock at 3, 450. The customer has not yet decided whether or not to keep the furniture. 6 In June the company spent 33,000 (inclusive of 10% VAT) on furniture from a bankrupt manufacturer. This stock is still in the bankrupt manufacturer's warehouse and therefore it has not been included in closing stock. To generate orders a circular was produced and distributed to all major customers at a cost of 850. 7 The closing stock figure includes 60 yards of leather valued at 20 per yard, being the cost per yard shown on the last purchase invoice received. This invoice was for 40 yards of leather. The previous invoice received was for 70 yards of leather at a cost of 18 per yard. BEOUTREMENTS VIDEO S - Prepare a schedule amending the stock figure as at 30/6/20x0 as necessary to comply with IAS2. Outline your reason for either making or not making an amendment to closing stock for the above 7 discoveries. (40 marks)

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