BEST Group Financial Statements and Taxation (Financial Accounting 3A)

PROGRAMME Bachelor of Commerce in Accounting
MODULE Group Financial Statements and Taxation (Financial Accounting 3A)
YEAR Three (3)
INTAKE January 2025
Semester 1
MARKS 30
Impact of Change

The following table summarizes the inventory values under both methods for the years
2021, 2022, and 2023. The impact of the change is reflected in the adjustments made to
the finished goods inventory.

Raw Materials Finished Goods Finished Goods (Weighted Adjustmen
Year
(FIFO) (FIFO) Average) t

2021 65,000 182,000 185,000 -3,000


2022 78,000 205,000 210,000 -5,000


2023 72,000 185,000 190,000 -5,000

Affected Balances

The adjustments to the finished goods inventory will affect the total assets and retained
earnings as follows:

1. 2021:

 Finished Goods Inventory (FIFO): 182,000

 Adjustment: -3,000

 Total Impact on Assets: -3,000

2. 2022:

 Finished Goods Inventory (FIFO): 205,000

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