The closing inventory of X amounted to $90,000 . excluding the following two inventory lines:
1. 400 items which had cost $24 each. All were sold after the reporting period for $19 each, with selling expenses of $900 for the batch.
2. 200 different items which had cost $20 each. these items were found to be defective at the end of the reporting period. Rectification work after the statement of financial position amounted to $704 , after which they were sold for $21 each, with selling expenses totalling $300.
What figure should appear in the statement of financial position of X for inventory?
Suggested solutions:
| Item 1 | Cost | Items | Valuation |
| Cost | 24 | 400 | 9,600 |
| NRV | 19 | 400 | 7,600 |
| Selling Expenses | 900 | ||
| Net Realisable Value | 6,700 | ||
| Item 2 | Cost | Items | Valuation |
| Cost | 20 | 200 | 4,000 |
| NRV | 21 | 200 | 4,200 |
| Selling Expenses | 300 | ||
| Rectification Expenses | 704 | ||
| Net Realisable Value | 3,196 |
| Closing Inventory | 90,000 |
| Item 1 valuation | 6,700 |
| Item 2 valuation | 3,196 |
| Year End Inventory | 99,896 |
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2015 ACCA F3 INVENTORY