Financial Statements (AQ2013) Practice Assessment 1 Task 1.6 (Inventories)


Hello everyone,

I wonder if someone could help me, I am a bit stuck on the practice assessment task 1.6 in relation to calculating inventories.

The answer is 754 but I am not sure how to get to this answer?
Please help!

Thanks you
Agnes

Comments

  • Adele69
    Adele69 AAT Student Posts: 320
    consolidated inventories (prior to any adjustments = 758 ( Beacon 537 + Hill 221)
    as given in the answer

    from the further info: Beacon sold inventory (costing 40) to Hill for 60, and one fifth remain unsold, so (60 x 0.2) - (40 x 0.2) = 12 - 8 = 4 to be deducted from inventories as the intercompany adjustment
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