The closing inventory of X amounted to $140,000 . 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 $900 for the batch.
2. 200 different items which had cost $40 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 $440 , after which they were sold for $42 each, with selling expenses totalling $1,200.
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 | 900 | ||
| Net Realisable Value | 22,300 | ||
| Item 2 | Cost | Items | Valuation |
| Cost | 40 | 200 | 8,000 |
| NRV | 42 | 200 | 8,400 |
| Selling Expenses | 1,200 | ||
| Rectification Expenses | 440 | ||
| Net Realisable Value | 6,760 |
| Closing Inventory | 140,000 |
| Item 1 original valuation | (28,800) |
| Item 1 new valuation | 22,300 |
| Item 2 original valuation | (8,000) |
| Item 2 new valuation | 6,760 |
| Year End Inventory | 132,260 |
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2015 ACCA F3 INVENTORY