Comments

  1. avatar says

    If cost is low and NRV is high, we take cost because the goods have not been sold. But when NRV is low and cost is high, why do we take cost? if the goods aren’t sold then why do we take it at cost?

  2. avatar says

    According to the BPP textbook, selling costs ‘would not be included in cost of inventories. Instead, they should be recognised as an expense in the period they are incurred.’
    Could you please explain? (Thank you in advance).

      • Profile photo of John Moffat says

        We certainly do not include selling costs when getting the cost of inventories – we only include production costs.

        However, we DO subtract selling costs from the selling price when calculating the net realisable value – that is done for completely different reasons as I explain the lecture.

  3. avatar says

    Hello John Moffat,

    Please kindly ignore those yapping on endlessly about a slight written mistake. You said the right thing, followed the right principle and got the right answer.

    We are all human and humans make mistakes which only makes us more human.

    Please give the tutor a break and take what you have to learn from it and move on.

    After all he has passed through the exams and is qualified and we are still learning. let us all stay focused and move on.

    Thanks.

  4. avatar says

    Great lesson as usual, the tutor is only human and as we all know human makes mistakes, though he done his calculation right and even took the lower value “6” right. The ones that are moaning needs to use some common sense.

Leave a Reply