If you have a new account but are having problems posting or verifying your account, please email us on for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact

Accounting Exam Practice Question - AAT

  • 27-09-2021 7:27pm
    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


  • 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