A. Based on the fundamental principle of IAS2, identify two (2) circumstances where the NRV of inventory might be lower than its cost?

B. Storm Inc. had 500 units of Product X at 30 June 2020 in inventory. The product had been purchased at list price of $18 per unit and normally sells for $24 per unit.

Additional information relating to the units in inventory: VAT 10%; wharehousing cost - $0.40 per unit; purchase discount - $0.55 per unit; carriage inwards - $0.60 per unit.

Recently , Product X started to deteriorate but can still be sold for $24 per unit, provided that some rectification/re-packaging work is undertaken at a cost of $3 per unit.

Required:

At what amount would Product X be required to be stated on 30 June 2020? Provide detailed analysis to support your answer