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Inventories

This topic has 1 reply, 2 voices, and was last updated 10 years ago by John Moffat.

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February 28, 2014 at 2:12 am #161042
Kevin
Member
- Topics: 7
- Replies: 3
an item of inventory was purchased for $80 and requires $5 of further expenditure to get it ready for sale. it is expected to be sold for $95. how much should each item be valued at?
– Can someone help me with this question pls?
February 28, 2014 at 6:32 am #161047
John Moffat
Keymaster
- Topics: 57
- Replies: 54479
It should be valued at the lower of cost and net realisable value. The cost is 80 and the net realisable value is 95 – 5 = 90
If you are still unclear then watch my lecture in inventories.
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