Cambridge IGCSE Accounting practice

Paper 2 structured question: Valuation of inventory

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Valuation of inventory

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Paper 2Structured Written Paper3 marks

A business has reported inventory at a cost of $15,000, but the net realizable value is $12,000.

Description

Discuss the implications of using the lower of cost or net realizable value method for this inventory.

a
Discuss the implications of using the lower of cost or net realizable value method for this inventory.
Your answer
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[3]

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Paper 2Structured Written Paper1 marks

Description

Determine the value of the inventory using the lower of cost or net realizable value method.

a
Calculate the value of the inventory.
Your answer
Aim for approximately 1 distinct marking point.
[1]