Advertisement
Help Keep Boards Alive. Support us by going ad free today. See here: https://subscriptions.boards.ie/.
If we do not hit our goal we will be forced to close the site.

Current status: https://keepboardsalive.com/

Annual subs are best for most impact. If you are still undecided on going Ad Free - you can also donate using the Paypal Donate option. All contribution helps. Thank you.
https://www.boards.ie/group/1878-subscribers-forum

Private Group for paid up members of Boards.ie. Join the club.
Hi all, please see this major site announcement: https://www.boards.ie/discussion/2058427594/boards-ie-2026

Accounting Exam Practice Question - AAT

  • 27-09-2021 06:27PM
    #1
    fragglerock77
    Registered Users, Registered Users 2 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

  • #2
    DubCount
    Registered Users, Registered Users 2 Posts: 1,160 ✭✭✭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.



  • #3
    fragglerock77
    Registered Users, Registered Users 2 Posts: 13 ✭fragglerock77


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



Advertisement