What adjustment should be made in the cost of sales

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Question - On 1 April 2019 Peter purchased 80% of striker. From this date Peter sold goods to striker at a selling price of £36 million. Peter made a profit of cost plus 25% on these sales. £15 million (at cost to striker) of these goods remained in the inventories of striker at 30 September 2019.

Required - What adjustment should be made in the cost of sales of the group statement of profit or loss in respect of unrealised profit for the year ended 30 September 2019?

Reference no: EM132982733

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