PRC-1 · Chapter 7 · Question 86 of 100
An entity evaluates its closing inventory on an item-by-item basis. Item X: Cost 50, NRV 45. Item Y: Cost 30, NRV 35. Item Z: Cost 20, NRV 18. What is the total correct valuation of the closing inventory?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Rs. 93
Explanation
Applying the lower of Cost and NRV rule for each item individually: Item X = 45. Item Y = 30. Item Z = 18. Total = 45 + 30 + 18 = 93.
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