Accounting 0452 · IGCSE · Valuation of inventory

Valuation of inventory — practice question

Nirmal has two products in stock, product G and product H. The information below shows his inventory at the end of the financial year. Product G: 1000 units, cost price per unit $2.00$, net realisable value per unit $2.50$. Product H: 800 units, cost price per unit $1.50$, net realisable value per unit $1.20$. It was discovered that 100 units of product G had been damaged and could not be sold. What was the total value of Nirmal’s inventory?

  • A$2760$
  • B$3000$
  • C$3260$
  • D$3460$

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