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Dear Sir I need your help on the below question please
XYZ plc holds 3 types of inventory, as per the following details are relevant:
Inventory Type Cost Selling Price Selling Costs
X 250 275 40
Y 125 145 15
Z 320 290 30What amount should XYZ plc include in its statement of financial position for inventory in accordance with IAS 2 inventory?
A- 700
B- 620
C-695
D-630Thanks in advance for your kind help, please give me also simple explanation as I’ve some confusions
I thought that I’d just answered this!
IAS 2 says value inventory, line by line, at the lower of cost and NET realisable value
X valued at 235
Y valued at 125
Z valued at 260Total 620, answer B
OK?
Ok, thanks so much Mr. Mikelittle , it’s fine now and understood well after I read the standard again
thanks so much
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