Sample Assesment 2 Question 6 B - HELP

Hi all, really tearing my hair out trying to understand Question 6 Part B on the workings "Cost of sales" Total Intercompany Adjustment.... The answer on AAT website is -495 but I cannot reach this answer. If anyone can help it would be much appreciated :)

Comments

  • dumutrobadumutroba AAT Student, AATQB Posts: 242
    Will be glad to help, but please attach the question
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  • Dimps92Dimps92 Registered Posts: 17
    Sorry if its too late to respond.....
    Goods cost - £440000
    Sold for - £550000
    550000-440000=110000 realised profit
    Half of these goods remain in inventory...
    110000/2=55000 unrealised profit
    440000+55000=495000 inter co adj for cos.

    Hope this makes sense :)
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