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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.
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.
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