Thunder Limited had inventory with a cost of R10,000 at the end of the financial period, 31 December 20.19.
It estimated the net realisable value of this inventory was R9,000 at 31 December.
One week later, the inventory was sold for R7,000.
If their financial statements were finalised on 14 February 20.20, what value should be assigned to this inventory?
a.
R10 000
b.
R9 000
c.
R7 000
c. R7 000
The value assigned to the inventory should be its net realizable value at the end of the financial period, which was R9,000. Since the inventory was sold for R7,000 one week later, the value assigned to the inventory at the financial statements finalization date should be R7,000.