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Inventory

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Inventory

  • This topic has 3 replies, 2 voices, and was last updated 4 years ago by AvatarJohn Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • October 29, 2021 at 8:21 am #639368
    AvatarJames124
    Participant
    • Topics: 166
    • Replies: 138
    • ☆☆☆

    1) Fifo and AVCO inventory valuation method is for Raw material only or for all inventories?
    2) Lower of Cost and NRV method is for Finished goods only or for all Inventories?

    October 29, 2021 at 3:04 pm #639382
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54836
    • ☆☆☆☆☆

    1. For all inventories.

    2. For finished goods only.

    October 29, 2021 at 5:07 pm #639400
    AvatarJames124
    Participant
    • Topics: 166
    • Replies: 138
    • ☆☆☆

    Thank you tutor.

    Tutor, the reason for (2).
    Is that we never sell WIP and Raw Material so therefore not NRV?

    October 30, 2021 at 5:52 am #639416
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54836
    • ☆☆☆☆☆

    Correct!

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Inventory’ is closed to new replies.

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