# FSLC Test 2 AAT Task 6

Registered Posts: 136 Dedicated contributor 🌟 🐵 🌟
Hi,

Thanks
Sophie

• Registered, MAAT, AATQB, AAT Licensed Accountant Posts: 117 Dedicated contributor 🌟 🐵 🌟
Morning Sophie

Ok, so the 211 is simply the 186 and 25 additional income from the two companies

The -495 relates to the cost of sales. For Lund it is £12454 and For Visby it is £3245 = total £15699. But our answer to cost of sales in table 1 = £15204. It simply £15204 - £15,699 = -495
• Registered, MAAT, AATQB, AAT Licensed Accountant Posts: 117 Dedicated contributor 🌟 🐵 🌟
And if anyone is struggling on how to get 15204 for cos in table 1, then:

Goods cost - £440,000
Goods sold for - £550,000
£550,000 - £440,000 = £110,000 realised profit
We are told that half of these goods remain in inventory so therefore, £110,000 / 2 = £55,000 unrealised profit
Take the £440,000 + £55,000 = 495,000 intercompany adjustment for cost of sales.

So it has to be a -£495,000 (0r -495 as the table is in 000's
• Registered Posts: 136 Dedicated contributor 🌟 🐵 🌟
@CornishPixie thank you so much for explaining it to me thats helped loads