Question: The following information relates to inventory held at the year-end: Item A Item B Cost 65 35 Selling price 90 44 Cost of

The following information relates to inventory held at the year-end:

Item A Item B

£ £

Cost 65 35

Selling price 90 44

Cost of modification required to enable sale 16 n/a

Marketing and distribution costs 20 10

The modification costs required for item A arose because of changes requested by the customer and the customer has agreed to pay for half of the additional cost. Item B can be transferred to another department and incorporated into a product that will be sold for a significant profit. What is the total amount to be included in closing inventory for these 2 items?

A. £88

B. £89

C. £96

D. £97

Step by Step Solution

★★★★★

3.47 Rating (154 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Answer Ans As per IAS 2 Inventory Valuation requires inventoryFinished goods to be measured at lower ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

The budgeting process and budgets themselves have significant impacts on management actions and performance, in both positive and negative ways. It is common at many local, state, or national...

Write a memo to your boss saying that you will be out of town two days next week and three days the following week for one of the following reasons: to attend a conference sponsored by a professional...

Write a memo to Linda explaining your position on this problem and why you think it would be the best solution Write second memo to the CEO that describes two or three ways of ensuring that employees...

The consolidated income statement of Pul and Swa for 2011 was as follows (in thousands):Sales $2,760Cost of sales (1,840)Operating expenses (320)Income to 20 percent noncontrolling interest in Swa...

Here is a list of the dollar amounts of recent billings: a. Find the average sale. What does this number represent? b. Find the standard deviation. What does this number represent? c. Find the...

The following information relates to the 2014 debt and equity invesm1ent transactions of Wildcat Ltd., a publicly accountable Canadian corporation. All of the investments were acquired for trading...

Krauss Leasing Company signs a lease agreement on January 1, 2011, to lease electronic equipment to Stewart Company. The term of the non-cancelable lease is 2 years, and payments are required at the...

Fieval Leasing Company signs an agreement on January 1, 2010, to lease equipment to Reid Company. The following information relates to this agreement. 1. The term of the non-cancelable lease is 6...

Julia Vanfleet is professor of mathematics. She has received a $225,000 inheritance from her fathers estate, and she is anxious to invest it between now and the time she retires in 12 years....

Analyzing inventories over three years The following information relates to the activities of Mattel, a manufacturer of toys (amounts in millions): a. Compute the inventory turnover for each year. b....

From the e-Activity, select an athlete and study the performance trends of his/her career. Once you have reviewed his/her performance trends, provide three bullets about how his/her career has been...

A good structure diagram should be loosely coupled yet strongly cohesive. How can you achieve both characteristics simultaneously? What implications do these characteristics have on error-prone...

7.21 Why is the sample mean an unbiased estimator of the population mean?

Which of the following set of alcohols can form a carbocation that is prone to shifting/rearrangement? * HO , HO HO, I II II IV IV || II %3D

Referring to the molecule below, which atom is the most acidic H bonded to? * 15 13 , 14. 12 11 16 10 18 8 19 17 20 N. H HO 24 21 22 23 C21 C2 024 015 Other:

Which one of the following 1 point substances will not have H- bonding as one of its IMF? * II IV H H H H CH3-C- CH, 0-0-H CH,-C-0-H N-N -C-N H H H H H O IV II II O v

Rank the following in increasing solubility in hexane: CH3 H3C OH H3CONa HC-ONa H3 SA NA OL OL

Quality Care AssignmentAssignment 20% - SPRING/SUMMER 2025 Purpose Students will identify family needs for child care, including the needs of the child(ren) and the needs of the parent(s). They will...

How can cost accounting information together with a classification of activities into those that are value-added and those that are nonvalue-added help managers improve an organizations performance?

The following balances are from the accounts of Hill Components: Direct materials used during the year amount to $46,000, and the cost of goods sold for the year was $53,000. Required Find the...

Gunnison Supply provides the following information about resources: In addition, sales for the period totaled $150,000. Required a. Compute unused resource capacity for each resource. b. Describe...

A shop works a 400- minute day. The manager of the shop wants an output of 200 units per day for the assembly line that has the elemental tasks shown in the table. Do the following: a. Construct the...

Arrange the eight departments shown in the accompanying Muther grid into a 2 4 format. Department 1 must be in the locationshown.

Using the information given in the preceding problem, develop a Muther-type grid using the letters A, O, and X. Assume that any pair of combinations not mentioned have an O rating.