Giulia deals in fashion goods. At 31 December 20X5 her end of year inventory totals £18 270, valued at cost. Included in this amount is inventory at a cust price of £4 750. Guilia estimates that its net realisable value, however, is only 680. Giulia's opening inventory at 1 January 20XS is £16 777. Revenue for the year is £193 939 and purchases are £141 338. Purchases returns are £1385. Which of the following is correct? Applying the rules of inventory valuation, Giulia's gross profit for the year is: a) £55 479 b) £50 734 c) £500 24 d) 51 409
Giulia deals in fashion goods. At 31 December 20X5 her end of year inventory totals £18 270, valued at cost. Included in this amount is inventory at a cust price of £4 750. Guilia estimates that its net realisable value, however, is only 680. Giulia's opening inventory at 1 January 20XS is £16 777. Revenue for the year is £193 939 and purchases are £141 338. Purchases returns are £1385. Which of the following is correct? Applying the rules of inventory valuation, Giulia's gross profit for the year is: a) £55 479 b) £50 734 c) £500 24 d) 51 409
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Giulia deals in fashion goods. At 31 December 20X5 her end of year inventory totals £18 270, valued at cost. Included in this amount is inventory at a cust price of £4 750. Guilia estimates that its net realisable value, however, is only 680. Giulia's opening inventory at 1 January 20XS is £16 777. Revenue for the year is £193 939 and purchases are £141 338. Purchases returns are £1385.
Which of the following is correct? Applying the rules of inventory valuation , Giulia's
gross profit for the year is:
a) £55 479
b) £50 734
c) £500 24
d) 51 409
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