When determining the net realisable value of inventories, estimates must be made of which of the following: I.$\quad$ Estimated selling costs
II.$\quad$Expected selling price
III.$\quad$Expected replacernent cost
IV.$\quad$Estimated costs of completion (if ary)
A) I, II, III and IV
B) I, II and III only
C) II and IV only
D) I, II and IV only

Question

Quizplus · Accepted Answer

Net realizable value of inventories is determined by estimating the expected selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale. Expected replacement cost is not directly considered in calculating net realizable value.

When Determining the Net Realisable Value of Inventories, Estimates Must \quad

When Determining the Net Realisable Value of Inventories, Estimates Must $\quad$