ACCA F3 Inventory

The closing inventory of X amounted to $60,000 . excluding the following two inventory lines:

1. 400 items which had cost $24 each. All were sold after the reporting period for $19 each, with selling expenses of $500 for the batch.

2. 200 different items which had cost $90 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 $616 , after which they were sold for $95 each, with selling expenses totalling $900.

What figure should appear in the statement of financial position of X for inventory?

Suggested solutions:

Item 1	Cost	Items	Valuation
Cost	24	400	9,600
NRV	19	400	7,600
Selling Expenses			500
Net Realisable Value			7,100
Item 2	Cost	Items	Valuation
Cost	90	200	18,000
NRV	95	200	19,000
Selling Expenses			900
Rectification Expenses			616
Net Realisable Value			17,484

Closing Inventory	60,000
Item 1 valuation	7,100
Item 2 valuation	17,484
Year End Inventory	84,584

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