The inventory value for the financial statements of Q for the year ended 31 December 2004 was based on an
inventory count on 4 January 2005, which gave a total inventory value of $836,200.
Between 31 December and 4 January 2005, the following transactions took place:
$
Purchases of goods 8,600
Sales of goods (profit margin30% on sales) 14,000
Goods returned by Q to supplier 700
What adjusted figure should be included in the financial statements for inventories at 31 December 2004?
A $838,100
B $853,900
C $818,500
D $834,300

A 836,200 – 8,600 + 700 + (14,000 x 70%) = 838,100

注意profit margin sales为100%，cost70%