ACCA FA2 VALUE INVENTORY
Janet valued for inventory at 30 June at its cost of $20,000. This includes some items which cost $2,000. which have been difficult to sell. Janet intends to have these items repacked at a cost of $640. She can then sell them for $1,600.
What will be the value of closing inventory in Janet's accounts at 30 June?
SUGGESTED SOLUTIONS
| $ | |
| Original Closing inventory | 20,000 |
| less slow moving items | (2,000) |
| Add selling price | 1,600 |
| Less repacking cost | (640) |
| Adjusted Closing Inventory | 18,960 |