Question text

On 1 January 2021, HK Trading commenced a retail business, which buys and sells fuel. He started the business by purchasing 7806 liters of fuel. The fuel was purchased at a cost of $2.6 per litre. During the year, all the fuel was sold for $5.1 per litre. By the end of the year, the cost of the fuel was $4 per litre.

Required

1.What is the Cost of Goods sold calculated under Exit Pricing?

2.Calculate the price valuation adjustment for inventory? [Hint: Use Ending Balance]

3.What is depreciation on shop fittings under Exit Price Accounting?

4.What is the price change adjustment on capital at 31October?