1.Locket Plc, a company with a year end of 31 October, has recorded the following inventory balances as at 31 October 2020. • 50,000 units of product C, which originally cost £7 per unit and have an estimated selling price of £9 per unit with costs to sell of £3.50 • 25,000 units of product D, which originally cost £14 and have an the estimated selling price of £21 per unit with no related selling costs Prior to the year-end financial statements being issued, it was discovered by the financial controller that there was a transposition error in the records for product D. The selling price as at 31 October 2020 was actually expected to be £12 per unit with no related selling costs. What should the total value be of the closing inventory for Locket Plc as at 31 October 2020?
1.Locket Plc, a company with a year end of 31 October, has recorded the following inventory balances as at 31 October 2020. • 50,000 units of product C, which originally cost £7 per unit and have an estimated selling price of £9 per unit with costs to sell of £3.50 • 25,000 units of product D, which originally cost £14 and have an the estimated selling price of £21 per unit with no related selling costs Prior to the year-end financial statements being issued, it was discovered by the financial controller that there was a transposition error in the records for product D. The selling price as at 31 October 2020 was actually expected to be £12 per unit with no related selling costs. What should the total value be of the closing inventory for Locket Plc as at 31 October 2020?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 13P: Webster Company adopted do liar-value LIFO on January 1, 2019. Webster produces three products: X,...
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1.Locket Plc, a company with a year end of 31 October, has recorded the
following inventory balances as at 31 October 2020.
• 50,000 units of product C, which originally cost £7 per unit and have an
estimated selling price of £9 per unit with costs to sell of £3.50
• 25,000 units of product D, which originally cost £14 and have an
the estimated selling price of £21 per unit with no related selling costs
Prior to the year-end financial statements being issued, it was discovered by the financial controller that there was a transposition error in the records for product D. The selling price as at 31 October 2020 was actually expected to be £12 per unit with no related selling costs.
What should the total value be of the closing inventory for Locket Plc as at 31 October 2020?
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