PRC-1 · Chapter 7 · Question 56 of 100
On 31 December 2015, a company has partly-completed inventory with a cost to date of Rs. 26,300. It is expected that further costs of Rs. 8,900 will be incurred to complete it. It will then be sold for Rs. 47,500 with selling costs of Rs. 2,000. What is the Net Realizable Value (NRV)?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Rs. 36,600
Explanation
NRV = Estimated Selling Price (47,500) - Estimated costs of completion (8,900) - Estimated selling costs (2,000) = Rs. 36,600.
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