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Tutorial 2 - Inventories.xlsx - Question 1 a Product X...

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Question 1 (a) Product X Cost -800 NRV -1,200 Whichever is lower: Valuation at Cost (800 x 20,000) Closing inventory at 31/12/2016 (b) RM A binding sale contact= 1,000 units Cost -800 NRV -1,500 Whichever is lower: Valuation at Cost (800 x 1,000)800,000 The balance of product X= 20,000 units - 1,000 units= 19,000 units Cost -800 NRV -700 Whichever is lower: Valuation at NRV (700 x 19,000)13,300,000 Closing inventory at 31/12/2016
RM 16,000,000 16,000,000 RM 14,100,000
Question 2 RM Closing inventory at 31/3/2017260,100 Adjustments: (1) Cost -46,000 x100/125= 36,800 NRV -40,000 - 4,500= 35,500 Valuation at NRV: Write-down of 1,300 (36,800-35,500)(1,300) (2) Goods on consignment(13,900) (3) Provision of slow-moving items: Cost -5,000 NRV -500 Valuation at NRV: Write-down of 4,500 (5,000-500)(4,500) (4) Items wrongly classified(1,240) Revised closing inventory as at 31/3/2017239,160
Question 3 RM Closing inventory at 31/1/2003284,700 1. Coats Cost -400 x 80= 32,000 NRV -400 x (150 x 50%) x 95%= 28,500 Valuation at NRV: Write-down of 3,500(3,500) 2. Skirts Cost -(800 x 20)= 16,000 NRV -[800 x (28-5)]-800= 17,600 Valuation at Cost: No adjustment required0 Revised closing inventory at 31/1/2003281,200
Question 4 RM(million) Closing inventory at 31/3/20185 1. Old inventories Cost -2m NRV -(2m x 120%)-0.5m= 1.9m Valuation at NRV: Write-down of 0.1m(0.10) 2. Good inventories Cost -3m NRV -Higher than cost Valuation at Cost: No adjustment required0 Revised closing inventory at 31/3/2018
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