Accounting 0452 · IGCSE · Valuation of inventory

Valuation of inventory — practice question

Nirmal trades in two items, product G and product H. The information below shows the inventory he held at the end of the financial year. Product G: number of units $1000$, cost price per unit $\$2.00$, net realisable value per unit $\$2.50$. Product H: number of units $800$, 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 were unsaleable. What is the total value of Nirmal’s inventory?

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

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