Akash Ltd sells 3 products X, Y and Z. The following information was available at the year end :
|
| X | Y | Z |
| Cost | 7 | 10 | 19 |
| Fair Value | 10 | 8 | 15 |
| Units | 100 | 200 | 300 |
Value of closing inventory is done at Cost or NRV whichever is lower on item-by item basis as per AS 2 or IAS 2 For Product X inventory = 7*100 = 700 For product Y inventory = 8*200 = 1600 For product Z inventory = 15*300 = 4500 So total closing inventory = 700+1600+4500 = 6800
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