The closing inventory of X amounted to $10,000 . excluding the following two inventory lines:
1. 400 items which had cost $16 each. All were sold after the reporting period for $13 each, with selling expenses of $500 for the batch.
2. 200 different items which had cost $30 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 $264 , after which they were sold for $32 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 | 16 | 400 | 6,400 |
| NRV | 13 | 400 | 5,200 |
| Selling Expenses | 500 | ||
| Net Realisable Value | 4,700 | ||
| Item 2 | Cost | Items | Valuation |
| Cost | 30 | 200 | 6,000 |
| NRV | 32 | 200 | 6,400 |
| Selling Expenses | 750 | ||
| Rectification Expenses | 264 | ||
| Net Realisable Value | 5,386 |
| Closing Inventory | 10,000 |
| Item 1 valuation | 4,700 |
| Item 2 valuation | 5,386 |
| Year End Inventory | 20,086 |
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2015 ACCA F3 INVENTORY