The closing inventory of X amounted to $80,000 . including the following two inventory lines:
1. 400 items which had cost $56 each. All were sold after the reporting period for $45 each, with selling expenses of $100 for the batch.
2. 200 different items which had cost $60 each. these items were found to be defective at the end of the reporting period. Rectification work after the statement of financial position amounted to $528 , after which they were sold for $63 each, with selling expenses totalling $150.
What figure should appear in the statement of financial position of X for inventory?
Suggested solutions:
Item 1 | Cost | Items | Valuation |
Cost | 56 | 400 | 22,400 |
NRV | 45 | 400 | 18,000 |
Selling Expenses | 100 | ||
Net Realisable Value | 17,900 | ||
Item 2 | Cost | Items | Valuation |
Cost | 60 | 200 | 12,000 |
NRV | 63 | 200 | 12,600 |
Selling Expenses | 150 | ||
Rectification Expenses | 528 | ||
Net Realisable Value | 11,922 |
Closing Inventory | 80,000 |
Item 1 original valuation | (22,400) |
Item 1 new valuation | 17,900 |
Item 2 original valuation | (12,000) |
Item 2 new valuation | 11,922 |
Year End Inventory | 75,422 |
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2015 ACCA F3 INVENTORY