Inventory value at end of period ( video below)

The financial year of XYZ Co ended on 31 December 20X2. An inventory count on January 10 20X3 gave a total inventory value of $131,825.

The following transactions occurred between January 1 and January 10.

Purchases of goods    $1,975

Sales of goods (gross profit margin 30% on sales)   $3,750

Goods returned to a supplier   $200

What inventory value should be included in XYZ Co’s financial statements at 31 December 20X2?

Answer

$

Inventory count, 10 January 20X3                         131,825

Purchases since end of year                                     (1,975)

Cost of sales since end of year (3,750 x 70%)       2,625

Purchase returns since end of year                           200     

Inventory at 31 December 20X2                           132,675 

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