Reference no: EM132406898

Question

For the year ended 31 December 2018, the closing inventory of Super Ltd was initially aggregated to a figure of £876,120. During the internal audit process afterwards, the following issues were identified:

a) Goods A had been included at their original cost of £5,700. Due to the increasing demand of goods A from the market, they could be sold for £8,000.

b) Goods B had been included in the closing inventory at originally cost of £2,000, but had been damaged and were now unsaleable. They could, however, be sold for £1,100 as spares after repairs. The repair cost is estimated at £400.

c) Super Ltd had received goods costing £20,100 during the last week of December 2018 but because the invoices did not arrive until January 2019, they have not been included in inventories.

d) An inventory sheet total of £12,340 had been transferred to the summary sheet as £12,430.

e) Super Ltd has purchased a new set of machinery in December 2018, which is still in the process of installation. It was found that one of the components of the new machinery were included in the closing inventory at their purchase price of £3,470.

Required:

For Super Ltd, find the value of closing inventory that should be shown in its Statement of Financial Position as at 31 December 2018 by taking into consideration of the above information.