Answered step by step
Verified Expert Solution
Question
1 Approved Answer
TOUPI has calculated its closing inventory for year ended 31 July 2018 at 56,900. Included in this figure is a batch of 30 items of
TOUPI has calculated its closing inventory for year ended 31 July 2018 at 56,900. Included in this figure is a batch of 30 items of raw material carried at the cost price 1,000 each. These items have declined in value, and could be sold for a maximum of 28,500 at 31 July 2018. However, TOUPI plans to incorporate these items into finished goods and it expects these to generate a profit of 6,800. What is the correct figure for closing inventory at 31 July 2018 according to IAS 2 - Inventory?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started