In preparing financial statements for the year ended 31 March 2016, the inventory count was carried out on 4 April 2016. The value of inventory counted was GHS36 million. Between 31 March and 4 April goods with a cost of GHS2.7 million were received into inventory and sales of GHS7.8 million were made at a mark-up on cost of 30%. At what amount should inventory be stated in the statement of financial position as at 31 March 2016?

In preparing financial statements for the year ended 31 March 2016, the inventory count was carried out on 4 April 2016. The value of inventory counted was GHS36 million. Between 31 March and 4 April goods with a cost of GHS2.7 million were received into inventory and sales of GHS7.8 million were made at a mark-up on cost of 30%. At what amount should inventory be stated in the statement of financial position as at 31 March 2016?

Name: In preparing financial statements for the year ended 31 March 2016, t
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Description: In preparing financial statements for the year ended 31 March 2016, theinventory count was carried out on 4 April 2016. The value of inventorycounted was GHS36 million. Between 31 March and 4 April goods with a cost ofGHS2.7 million were received in

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 3RE: Reid Company uses the periodic inventory system. On January 1, it had an inventory balance of...

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