# Inventory IAS 2

vlambkin1
Just JoinedPosts:

**3**Registered
Hi

Can anyone help with calculating inventory under IAS 2?

I've been working on the practice exams on the AAT website and I cannot work out any of the inventory questions!

E.g in Practice exam 3 Question 1.4

A company has 3 different products in it's inventory:

Product Costs incurred to date Estimated Costs of Completion Expected Selling Price

1 £400 £180 £562

2 £572 £210 £798

3 £615 £173 £762

The answer is £1543 but I have no idea why!

I know that under IAS 2 the inventory is valued at the lower of cost and net realisable value but I just cannot get to the figure of £1543!

Any help would be much appreciated.

Thanks :001_smile:

Can anyone help with calculating inventory under IAS 2?

I've been working on the practice exams on the AAT website and I cannot work out any of the inventory questions!

E.g in Practice exam 3 Question 1.4

A company has 3 different products in it's inventory:

Product Costs incurred to date Estimated Costs of Completion Expected Selling Price

1 £400 £180 £562

2 £572 £210 £798

3 £615 £173 £762

The answer is £1543 but I have no idea why!

I know that under IAS 2 the inventory is valued at the lower of cost and net realisable value but I just cannot get to the figure of £1543!

Any help would be much appreciated.

Thanks :001_smile:

## Comments

591RegisteredLower of

400 or (562 - 180)

572 or (798 - 210)

615 or (762 - 173)

Gives you 382 +572 + 589 = 1543

3RegisteredIt finally makes sense now!