Question: How do I do this? Project 2 A. business. uses the net realisable value method to value its inventory because the market is volatile. This

How do I do this?

How do I do this? Project 2 A. business. uses the
Project 2 A. business. uses the net realisable value method to value its inventory because the market is volatile. This is because it is dependent on fashion trends for its sales gures. The variability makes the selection of net realisable value a 1viser choice for valuing inventory than the other options. The I:n.lsiness has four groups of items in their inventory .m... . ... ... .m... . ... .1... a... .... .. Market trends have changed and the business realises that they have overestimated sales of some products. These will have to be disoounted signicantly. Goods B have retained their value and are expected to still sell for the originally anticipated prioe of STD per item. Goods A are only likely to realise 515 per item, Goods C 510 per item and Goods D 541] per item. Calculate the market value for the inventory. Calculate the net realisable value providing explanation for your calculations. Convert the calculation and the reasons for the calculations into an ad hoc report Jfor your manager. Apply appropriate inventory valuation rules; make inventory flow assumptions and record inventory flows

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