In preparing financial statements for the year ended 31 March 20X9, the inventory count was carried out on 4 April 20X9. The value of inventory counted was £36 million. Between 31 March and 4 April goods with a cost of £2.7 million were received into inventory and sales of £7.8 million were made at a mark - up on cost of 30%. At what amount should the inventory be stated in the statemen of financial position as at 31 March 20X9? A. £39 million B. £39.3 million C. £36 million D. £36.3 million

In preparing financial statements for the year ended 31 March 20X9, the inventory count was carried out on 4 April 20X9. The value of inventory counted was £36 million. Between 31 March and 4 April goods with a cost of £2.7 million were received into inventory and sales of £7.8 million were made at a mark - up on cost of 30%. At what amount should the inventory be stated in the statemen of financial position as at 31 March 20X9? A. £39 million B. £39.3 million C. £36 million D. £36.3 million

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Description: In preparing financial statements for the year ended 31 March 20X9, theinventory count was carried out on 4 April 20X9. The value of inventory countedwas £36 million. Between 31 March and 4 April goods with a cost of £2.7 millionwere received into i

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter6: Inventories

Section: Chapter Questions

Problem 4BE: Beginning inventory, purchases, and sales for WCS12 are as follows: Assuming a perpetual inventory...

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Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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In preparing financial statements for the year ended 31 March 20X9, the
inventory count was carried out on 4 April 20X9. The value of inventory counted
was £36 million. Between 31 March and 4 April goods with a cost of £2.7 million
were received into inventory and sales of £7.8 million were made at a mark - up
on cost of 30%. At what amount should the inventory be stated in the statement
of financial position as at 31 March 20X9? A. £39 million B. £39.3 million C. £36
million D. £36.3 million

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