ACCA FA2 VALUE INVENTORY
Janet valued for inventory at 30 June at its cost of $50,000. This includes some items which cost $5,000. which have been difficult to sell. Janet intends to have these items repacked at a cost of $1,600. She can then sell them for $4,000.
What will be the value of closing inventory in Janet's accounts at 30 June?
SUGGESTED SOLUTIONS
| $ | |
| Original Closing inventory | 50,000 |
| less slow moving items | (5,000) |
| Add selling price | 4,000 |
| Less repacking cost | (1,600) |
| Adjusted Closing Inventory | 47,400 |