- This topic has 1 reply, 2 voices, and was last updated 9 months ago by
John Moffat.
John Moffat.Viewing 2 posts - 1 through 2 (of 2 total)
-
Posts
-
DeDo2003
- Topics: 1
- Replies: 1
- ☆
Purchase price of an item is $5. The estimated selling price is $7 & commission of $.50 per unit needs to be paid to sales representative.
What will be the NRV for the item?
Thanks in advance.
John Moffat
- Topics: 57
- Replies: 49601
- ☆☆☆☆☆
Why are you attempting a question for which you do not have an answer? You should be using a Revision Kit from one of the ACCA Approved Publishers – they have answers!!
The NRV is 7 – 0.5 = $6.50, and therefore any inventory will be values at $5.
This is all explained in my free lectures on the valuation of inventory. The lectures are a complete free course for Paper FA and cover everything needed to be able to pass the exam well.
DeDo2003
John MoffatViewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.