Diesel fuel in inventory at 1 November 20X5 was $3,125 , and there were invoices awaited for $425. During the year to 31 October 20X6, diesel fuel bills of $21,350 were paid, and a delivery worth $325 had yet to be invoiced. At 31 October 20X6, the inventory of diesel fuel was valued at $2,450.
What is the value of diesel fuel to be charged to the statement of profit or loss and other comprehensive income for the year to 31 October 20X6?
Answer
Diesel fuel purchased
Balance c/fwd = Balance b/fwd + purchase – payments
| $ | |
| Balance b/fwd | (425) |
| Payments | 21,350 |
| Balance c/fwd | 325 |
| Purchases | 21,250 |
| Cost of fuel used | |
| $ | |
| Opening inventory | 3,125 |
| Purchases | 21,250 |
| Closing inventory | (2,450) |
| Transfer to SPL | 21,925 |