The closing inventory of X amounted to $30,000 . excluding the following two inventory lines:
1. 400 items which had cost $64 each. All were sold after the reporting period for $51 each, with selling expenses of $800 for the batch.
2. 200 different items which had cost $50 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 $352 , after which they were sold for $53 each, with selling expenses totalling $750.
What figure should appear in the statement of financial position of X for inventory?
Suggested solutions:
| Item 1 | Cost | Items | Valuation |
| Cost | 64 | 400 | 25,600 |
| NRV | 51 | 400 | 20,400 |
| Selling Expenses | 800 | ||
| Net Realisable Value | 19,600 | ||
| Item 2 | Cost | Items | Valuation |
| Cost | 50 | 200 | 10,000 |
| NRV | 53 | 200 | 10,600 |
| Selling Expenses | 750 | ||
| Rectification Expenses | 352 | ||
| Net Realisable Value | 9,498 |
| Closing Inventory | 30,000 |
| Item 1 valuation | 19,600 |
| Item 2 valuation | 9,498 |
| Year End Inventory | 59,098 |
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2015 ACCA F3 INVENTORY