STOCK VALUE

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:31AM in AAT student discussion
Hi All
Just got a problem from a simulation its asking me to alter the value of stock

Stock value = £21600

Included is some steel at a cost £1400 but only now has a value of £650
Also 1500 litres , cost of 2p per litre It has failed all the tests and can now only be used by someone willing to pay £1100

Dont understand how to work it out

Thanks

LM1

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    STOCK VALUE
    LemonMuffin1 wrote:
    ...Stock value=£21600...steel at a cost £1400 but only now has a value of £650...Also 1500 litres, cost of 2p/litre It has failed all the tests and can now only be used by someone willing to pay £1100
    Hi LM1
    With regards to the first part of your question, the stock will be included at £650(lower of cost and NRV). The second part is a little confusing. Did you mean £11.00 as the price someone is willing to pay? Because 1500 litres at 2p a litre gives you only £30 as the cost of the inferior quality stock. If the above is correct then the stock will be included, again, at cost and NRV, which is the £11.00.
    So £21600-£1400+650-£30+£11=£20831 will be the value of your stock, in my opinion.
    Regards
    Tom

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