The closing inventory of X amounted to $180,000 . including the following two inventory lines:
1. 400 items which had cost $72 each. All were sold after the reporting period for $58 each, with selling expenses of $700 for the batch.
2. 200 different items which had cost $70 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 $74 each, with selling expenses totalling $450.
What figure should appear in the statement of financial position of X for inventory?
Suggested solutions:
| Item 1 | Cost | Items | Valuation |
| Cost | 72 | 400 | 28,800 |
| NRV | 58 | 400 | 23,200 |
| Selling Expenses | 700 | ||
| Net Realisable Value | 22,500 | ||
| Item 2 | Cost | Items | Valuation |
| Cost | 70 | 200 | 14,000 |
| NRV | 74 | 200 | 14,800 |
| Selling Expenses | 450 | ||
| Rectification Expenses | 352 | ||
| Net Realisable Value | 13,998 |
| Closing Inventory | 180,000 |
| Item 1 original valuation | (28,800) |
| Item 1 new valuation | 22,500 |
| Item 2 original valuation | (14,000) |
| Item 2 new valuation | 13,998 |
| Year End Inventory | 173,698 |
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2015 ACCA F3 INVENTORY