- This topic has 1 reply, 2 voices, and was last updated 2 years ago by P2-D2.
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.
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 FR Exams › Inventories
In the solution why did they use $22 as cost instead of $23 to multiply to the answer of $95,100 instead of $95,900
Caminas has the following products in inventory at the year end.
Product Quantity Cost Selling price Selling cost
A 1,000 $40 $55 $8
B 2,500 $15 $25 $4
C 800 $23 $27 $5
At what amount should total inventory be stated in the statement of financial position?
A $95,900
B $103,100
C $95,100
D $105,100
Hi,
Inventory is valued at the lower of cost and NRV (selling price less selling cost). For A the lower is the cost at $40, B the cost at $15, and C the NRV at $22 (27 – 5).
Thanks