The following information was extracted from Better Farms Enterprises. The accounting period ends on 31 August every year. An inventory count was conducted on 31 October 2018. The count revealed 585,780 harvested ears of corn. This physical quantity of corn was valued at ₦8,786,700. 79,890 harvested ears of corn were sold for ₦1,278,240. These ears of corn cost ₦859,230.
Required:
Compute the value of inventory for the year ended 31 August 2018.
See the suggested answer to practice activity 16.8 here.
Suggested answer to practice activity 16.8
Computation of the value of inventory as at 31 August 2018:
₦
Inventory on 31 October 8,786,700
Add: Inventory sold since 31 August 859,230
Inventory as at 31 August 9,645,930
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