consolidate income statements
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me again,
Why when we value stock at cost of next realiseable value, in this question this is the process:
during the year ice sold to hot good with a cost of 800 ,ooo at a mark up on cost at 25%. A quarter of these goods were still included in hots inventory a 30 june. Inderstand why you would deduct 1,000,000 from cost of sales but why as the stock has been overstaed by 50(the 25% mark up) do we add this back in to cost of sales?
Please help!
Why when we value stock at cost of next realiseable value, in this question this is the process:
during the year ice sold to hot good with a cost of 800 ,ooo at a mark up on cost at 25%. A quarter of these goods were still included in hots inventory a 30 june. Inderstand why you would deduct 1,000,000 from cost of sales but why as the stock has been overstaed by 50(the 25% mark up) do we add this back in to cost of sales?
Please help!
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