PRC-1 · Chapter 7 · Question 15 of 100
A business calculates the value of its closing stock on an item-by-item basis: Item A: Cost 95,000; NRV 93,000. Item B: Cost 100,000; NRV 102,000. Item C: Cost 85,000; NRV 79,000. Item D: Cost 78,000; NRV 85,000. Item E: Cost 44,000; NRV 41,000. What is the total value of the closing stock?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Rs. 391,000
Explanation
Applying the lower of Cost and NRV rule for each item: A=93,000; B=100,000; C=79,000; D=78,000; E=41,000. Total = 93k + 100k + 79k + 78k + 41k = Rs. 391,000.
More IAS 2: Inventories MCQs
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