Inventories

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February 28, 2014 at 2:12 am #161042
Kevin
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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
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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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