Doc Corp. reporting year ends on December 31, and it is currently preparing interim financial statements for the six months ending June 30, 2018. The price of its product tens to vary. At June 30, 2018, it has inventories of 10,000 units, at a cost per unit of P12. The net realizable at June 30, 2018 is P10 per unit. Then expected net realizable value of these inventories at December 31, 2018 is P13.75. In the interim statement of financial position at June 30, 2018, these inventories should be presented at what amount?
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Doc Corp. reporting year ends on December 31, and it is currently preparing interim
financial statements for the six months ending June 30, 2018. The price of its product tens to vary.
At June 30, 2018, it has inventories of 10,000 units, at a cost per unit of P12. The net realizable
at June 30, 2018 is P10 per unit. Then expected net realizable value of these inventories at
December 31, 2018 is P13.75. In the interim
Step by step
Solved in 2 steps
