- This topic has 1 reply, 2 voices, and was last updated 11 months ago by .
Viewing 2 posts - 1 through 2 (of 2 total)
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.
Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>
Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Chapter 19 – Inventory (example 1)
Hi,
Why don’t we take the $500 conversion costs when calculating the NRV? Doesn’t it form part of cost to complete? Because it should go through the conversion costs (2nd stage) in order to acquire the finished product. Or am i misunderstanding and the $500 already forms part of the $1450 selling price?
Thanks
Not quite clear about your question.
The example makes the assumption that the business can either sell FINISHED PRODUCT or PART-FINISHED PRODUCT.
In each case it has calculated both cost and NRV
Don’t spend too long here as it’s more of a Financial Accounting question
🙂