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Accounting Exam Practice Question - AAT

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  • 27-09-2021 7:27pm
    #1
    Registered Users Posts: 13


    Not sure if it's allowed and am sure it's very obvious but have a question on Closing Stock?


    Does "costs to complete" have any relevance in Closing Stock?


    Question is


    Closing Stock 40,000 but dosent include following item:

    Selling price: 10,000

    Costs to date: 8,000

    Selling Costs: 200

    Costs to complete 2000


    Is closing stock 40,000 - 200, or is it 40,000 + 2,200?....or am I completely losing it

    Post edited by fragglerock77 on


Comments

  • Registered Users Posts: 1,089 ✭✭✭DubCount


    Stock is valued at the lower of cost and net realisable value.

    The item not included has a cost (cost to date 8,000) and a net realisable value (Sales price 10,000 less selling cost 200 less cost to completion 2,000 = 7.800)

    Closing stock is 40,000 + 7,800 = 47,800

    I could be miles off, but thats what I reckon.



  • Registered Users Posts: 13 fragglerock77


    @DubCount Thank you, that would make more sense...this online learning can be a right pain



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