Hemlock Co's closing inventory at 30 September 20X3 was valued at FIFO cost as $12.4 million. If the inventory had been valued using the weighted average cost (AVCO) method, it would have been $11.6 million. What would be the effect on profits for the year ended 30 September 20X3 if Hemlock Co were to adopt the AVCO method of inventory valuation?

Inventory valuation affects both profit measurement and balance-sheet presentation. Under prudent accounting, inventory is generally valued at:

Dylan performs an inventory count on 30 December 20X6 ahead of the 31 December year-end. Dylan counts 1,200 identical units, each costing $50. On 31 December, Dylan sold 20 of these units for $48 each. What value should be included in Dylan's statement of financial position for inventory at 31 December 20X6?