Compute the total inventory value that should be shown on the statement of financial position for these 3 types of components A company buys used components which it reconditions and then sells to customers. The company'sinventory at the end of the most recent accounting period included the following types of components:Purchase Price Expected sellingExpected furtherReconditioningcosts before sale(£)price (E)costs to date (£)(£)Component AComponent BComponent C14,00012,0006,0002,00010,0001,00020,00022,0001,0003,0003,0004,00036,00048,000

Name: Compute the total inventory value that should be shown on the statemen
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Description: Compute the total inventory value that should be shown on the statement of financial position for these 3 types of components A company buys used components which it reconditions and then sells to customers. The company'sinventory at the end of the m

Inventory means the stock of goods in hand . Goods means the thing in which the business deals and…

Answered: A company buys used components which it…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Compute the total inventory value that should be shown on the statement of financial position for these 3 types of components

A company buys used components which it reconditions and then sells to customers. The company's
inventory at the end of the most recent accounting period included the following types of components:
Purchase Price Expected selling
Expected further
Reconditioning
costs before sale
(£)
price (E)
costs to date (£)
(£)
Component A
Component B
Component C
14,000
12,000
6,000
2,000
10,000
1,000
20,000
22,000
1,000
3,000
3,000
4,000
36,000
48,000

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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