The Pottery Co has recently undertaken their year end inventory inspection. During the inspection some items were discovered which had been damaged. A vase which had originally cost £155 and would have sold for £450 will now have to be discounted and sold for E175. 350 dinner sets which had originally cost £42 each and would have sold for £75 now need repair work costing E45 for each set. They can then be sold at the original selling price. At what value should the vase be included in closing inventory? £ What is the total value of the 350 dinner sets to be included in closing inventory?

The Pottery Co has recently undertaken their year end inventory inspection. During the inspection some items were discovered which had been damaged. A vase which had originally cost £155 and would have sold for £450 will now have to be discounted and sold for E175. 350 dinner sets which had originally cost £42 each and would have sold for £75 now need repair work costing E45 for each set. They can then be sold at the original selling price. At what value should the vase be included in closing inventory? £ What is the total value of the 350 dinner sets to be included in closing inventory?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 11Q: A retailer discovers that 50% of the total inventory items delivered from the manufacturer are...

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