Remedial Work

It is only subtracted from the selling price when the extra work is needed before the item is sold and the expense has not yet been incurred at the date of the SOFP.

incurred at the date of sofp..which means that the exoense should not happen after the year end of the SOFP to be considered in the cost of inventory?

Have you actually watched my lectures on this because it is something that will be asked in virtually every exam!!! If you read again what I wrote carefully, I said that the expected expense will be subtracted from the expected selling price in order to get the net realisable value only if the expense had NOT already been incurred at the date of the SOFP. (If it had been incurred before the year end then it would increase the cost of the inventory.)