Valuation of Inventories Exercise Emaar Plc has provided the follow information for its inventory as at...

Transcribed Image Text:

Valuation of Inventories Exercise Emaar Plc has provided the follow information for its inventory as at 31" December 2021. Beginning Retained earnings AED 50,000 Beginning cash balance AED 60,000 Purchases 10,000 at AED 15 Beginning Inventory 5,000 at AED 13 11,000 at AED 40 AED 30,000 30% Sales Operating expenses Tax rate REQUIRED i) Prepare and compare the income statement for Emaar Plc using Average cost and First in First out inventory valuation methods. Valuation of Inventories Exercise Emaar Plc has provided the follow information for its inventory as at 31" December 2021. Beginning Retained earnings AED 50,000 Beginning cash balance AED 60,000 Purchases 10,000 at AED 15 Beginning Inventory 5,000 at AED 13 11,000 at AED 40 AED 30,000 30% Sales Operating expenses Tax rate REQUIRED i) Prepare and compare the income statement for Emaar Plc using Average cost and First in First out inventory valuation methods.

Answer rating: 100% (QA)

The question provided is asking to prepare and compare the income statement for Emaar Plc using two different inventory valuation methods Average Cost and First In First Out FIFO To calculate the cost ... View the full answer