NRV FOR BOUGHT STOCK

This topic has 1 reply, 2 voices, and was last updated 2 years ago by P2-D2.

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March 12, 2024 at 9:58 pm #702952
Buckkri6
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What costs should be deducted for bought stock would you subtract cost of the stock from the selling price or would the NRV just be the price?

For example you bought cups to sell for 4 pounds and it cost 0 50p in frieght and you sell them for 10 pounds. What is the net realisable value?

I cannot find standard for NRV of bought stock?
March 17, 2024 at 8:54 am #703097
P2-D2
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NRV is the selling price less the selling costs. In the example above it looks like the NRV is the £10 as there is no mention of any selling costs. The £0.50 freight cost will form part of the cost of the inventory.
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