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use the opening and closing inventories to find the provision for unrealised.
Use the transfer value of 120000 to find the factory profit. i.e 120000/120*20
Add that and the adjustment to unrealised profit to the profit they have given.
Answer should be C.
C
CЯeScɘnt
here transfer price equals to cost price not cost + profit,ryt, butt how do we know that?
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transfer price means cost + profit.
C
CЯeScɘnt
dont we take provision for unrealized profit on profit?
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yup.. we do.. thats what i meant when i said about the adjustment for unrealised profit
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