question archive SKU Quantity Cost £ Net realisable Code units per unit value £ per unit XX3 20 10 9 PL3 15 12 13 XH8 14 8 7 LB3 9 20 21 Question 40: What is the value of the company's closing inventory for the period?
SKU Quantity Cost £ Net realisable Code units per unit value £ per unit XX3 20 10 9 PL3 15 12 13 XH8 14 8 7 LB3 9 20 21 Question 40: What is the value of the company's closing inventory for the period?
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SKU Quantity Cost £ Net realisable Code units per unit value £ per unit XX3 20 10 9 PL3 15 12 13 XH8 14 8 7 LB3 9 20 21 Question 40: What is the value of the company's closing inventory for the period?
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The Inventory should be valued at either its historical cost or Net Realizable value whichever is lower.
Calculation of Closing Inventory for the period
| SKU Code |
Quantity Units |
Cost £ per unit (a) |
Net Realizable value £ per unit (b) | Lower of Cost or Net Realizable value per unit (c) | Value of Inventory [units * (c) ] |
| XX3 | 20 | 10 | 9 | 9 | 180 (20 * 9) |
| PL3 | 15 | 12 | 13 | 12 | 180 (15 * 12) |
| XH8 | 14 | 8 | 7 | 7 | 98 ( 14 * 7) |
| LB3 | 9 | 20 | 21 | 20 | 180 (9 * 20 ) |
| 638 |
Ans : The value of company's closing inventory for the period is £638.
