Palo Ltd has put the following values on the stock in hand at the end of the period:

Transcribed Image Text:

Cloth A Cloth B Cost () 4567 8.650 Net realizable value (E) 8 764 12 400 Trimmings 2 450 Lining cloth Total 4 750 20 417 1 200 6.300 28 664 The company proposes to use the figure of 20 417 in the statements as it is the lower of cost and net realizable value. Required Comment on the stock value used by Palo Ltd calculating the figure you would include.