Question 3 A Based on the fundamental principle of IAS2, identify two (2) circumstances where the NRV of inventory might be lower than its cost (2 mks) 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 55 per unit purchase discount $0 40 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 (6 marks)

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Question 3 A  Based on the fundamental principle of IAS2, identify two (2) circumstances where the NRV of inventory might be lower than its cost  (2 mks) 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 55 per unit  purchase discount   $0 40 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  (6 marks)

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Question 3 A. Based on the fundamental principle of IAS2, identify two (2) circumstances where the NRV of inventory might be lower than its cost?

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