Yam Yu Ltd had a closing inventory amounted to K116,400 excluding the following two inventory lines:400 items which had cost K4 each. All were sold after the reporting period for K3 each, with selling expenses of K200 for the batch.200 different items which had cost K30 each. These items were found to be defective at the end of the reporting period. Rectification work after the statement of financial position amounted to K1,200, after which they were sold for K35 each, with selling expenses totalling K300.Required:Calculate the inventory total figures that should appear in the statement of financial position.

Name: Yam Yu Ltd had a closing inventory amounted to K116,400 excluding the
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Description: Yam Yu Ltd had a closing inventory amounted to K116,400 excluding the following two inventory lines:400 items which had cost K4 each. All were sold after the reporting period for K3 each, with selling expenses of K200 for the batch.200 differen

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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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Yam Yu Ltd had a closing inventory amounted to K116,400 excluding the following two inventory lines:

400 items which had cost K4 each. All were sold after the reporting period for K3 each, with selling expenses of K200 for the batch.
200 different items which had cost K30 each. These items were found to be defective at the end of the reporting period. Rectification work after the statement of financial position amounted to K1,200, after which they were sold for K35 each, with selling expenses totalling K300.

Required:

Calculate the inventory total figures that should appear in the statement of financial position.

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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