The closing inventory of X amounted to $120,000 . including 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 $900 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 $88 , after which they were sold for $32 each, with selling expenses totalling $900.
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 | 900 | ||
| Net Realisable Value | 4,300 | ||
| Item 2 | Cost | Items | Valuation |
| Cost | 30 | 200 | 6,000 |
| NRV | 32 | 200 | 6,400 |
| Selling Expenses | 900 | ||
| Rectification Expenses | 88 | ||
| Net Realisable Value | 5,412 |
| Closing Inventory | 120,000 |
| Item 1 original valuation | (6,400) |
| Item 1 new valuation | 4,300 |
| Item 2 original valuation | (6,000) |
| Item 2 new valuation | 5,412 |
| Year End Inventory | 117,312 |
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2015 ACCA F3 INVENTORY