Preppy Ltd is a company located in Jhb.The physical inventory count on 31Decwmber indicated closing inventory with a cost of R55 000.Included in the closing inventory are damaged items with a cost price of R5000. The damaged inventory could be sold for R5100 if R450 was spent on repairs.Peppy Ltd also sent inventory with a selling price of R4800 to a client.This inventory is not included in the R55 000 closing balance. Peppy Ltd uses the perpetual system for recording inventory. Peppy Ltd uses a constant mark-up of 50% on cost. Peppy Ltd uses the cost model for measurement of equipment. Calculate Peppy Ltd closing inventory at 31 December 2022
Preppy Ltd is a company located in Jhb.The physical inventory count on 31Decwmber indicated closing inventory with a cost of R55 000.Included in the closing inventory are damaged items with a cost price of R5000. The damaged inventory could be sold for R5100 if R450 was spent on repairs.Peppy Ltd also sent inventory with a selling price of R4800 to a client.This inventory is not included in the R55 000 closing balance. Peppy Ltd uses the perpetual system for recording inventory. Peppy Ltd uses a constant mark-up of 50% on cost. Peppy Ltd uses the cost model for measurement of equipment. Calculate Peppy Ltd closing inventory at 31 December 2022
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Preppy Ltd is a company located in Jhb.The physical inventory count on 31Decwmber indicated closing inventory with a cost of R55 000.Included in the closing inventory are damaged items with a cost price of R5000. The damaged inventory could be sold for R5100 if R450 was spent on repairs.Peppy Ltd also sent inventory with a selling price of R4800 to a client.This inventory is not included in the R55 000 closing balance. Peppy Ltd uses the perpetual system for recording inventory. Peppy Ltd uses a constant mark-up of 50% on cost. Peppy Ltd uses the cost model for measurement of equipment.
Calculate Peppy Ltd closing inventory at 31 December 2022
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