On 31 May 2022, Mars's closing inventory count was valued at a cost of $750,000. This included some items of inventory which had a cost of $180,000 but had been damaged in a fire on 10 April 2022. Consequently, these items are not expected to achieve their normal selling price which is calculated to achieve a gross profit margin of 25%. These damaged items require repairs at a cost of $105,000 to be sold. Calculate the revised closing inventory value of Mars to be reported in the statement of financial position at the year ended 31 May 2022.
On 31 May 2022, Mars's closing inventory count was valued at a cost of $750,000. This included some items of inventory which had a cost of $180,000 but had been damaged in a fire on 10 April 2022. Consequently, these items are not expected to achieve their normal selling price which is calculated to achieve a gross profit margin of 25%. These damaged items require repairs at a cost of $105,000 to be sold. Calculate the revised closing inventory value of Mars to be reported in the statement of financial position at the year ended 31 May 2022.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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On 31 May 2022, Mars's closing inventory count was valued at a cost of $750,000.
This included some items of inventory which had a cost of $180,000 but had been
damaged in a fire on 10 April 2022. Consequently, these items are not expected to
achieve their normal selling price which is calculated to achieve a gross profit margin
of 25%. These damaged items require repairs at a cost of $105,000 to be sold.
Calculate the revised closing inventory value of Mars to be reported in the
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