If inventory item X has a cost of $49,000 and a net realisable value of $60,000 while inventory item Y has a cost of $2,000 and a net realisable value of $500, closing inventory will be valued at:
A) $49,500
B) $60,000
C) $62,000
D) $51,000

Question

Quizplus · Accepted Answer

Inventory item X is valued at the lower of cost and net realisable value, which is $49,000. Inventory item Y is valued at the lower of cost and net realisable value, which is $500. Therefore, closing inventory will be valued at $49,000 + $500 = $49,500.

If Inventory Item X Has a Cost of $49,000 and a Net