- 1 Marks
Question
Question:
What is the closing inventory for the period?
A. ₦69,300,000
B. ₦81,200,000
C. ₦81,600,000
D. ₦104,400,000
E. ₦108,000,000
Answer
Answer:
C. ₦81,600,000
Explanation:
Closing inventory is calculated using the formula:
Closing Inventory = Opening Inventory + Purchases + Carriage Inwards – Cost of Sales
Given the figures provided:
₦98,800,000 (Opening Inventory) + ₦706,000,000 (Purchases) + ₦17,500,000 (Carriage Inwards) – ₦740,700,000 (COGS) = ₦81,600,000.
- Tags: Closing Inventory, Financial Reporting, Inventory
- Level: Level 1
- Topic: Accounting for Inventory and Labour
- Series: MAY 2022
- Uploader: Kwame Aikins