Question
Sportsgear Ltd sets selling prices at cost plus 20%. The company's accounting period ended on 31 December 20x8. The physical inventory was taken on 5
Sportsgear Ltd sets selling prices at cost plus 20%. The company's accounting period ended on 31 December 20x8. The physical inventory was taken on 5 January 20x9 and amounted to 482,800 being the cost. Assuming that the remainder of information is as stated below, calculate the cost of closing inventory as at 31 December 20x8: Purchases and sales during the five days since 31 March were 79,400 and 105,300 respectively. An inventory sheet total has been carried forward from one page to another as 342,800 instead of 324,800. 48 units of an item were stated as 300 each whereas the real cost of these items was 300 per dozen.
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