Sample Assesment 2 Question 6 B - HELP

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TarynPitchfork
TarynPitchfork Registered Posts: 39
in Financial Statements for Limited Companies
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 :)

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  • dumutroba
    dumutroba Registered Posts: 262
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    Will be glad to help, but please attach the question
    AAT Level 2. 2018 Distinction
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  • Dimps92
    Dimps92 Registered Posts: 20
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    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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