Location Transport

plz help with showing the procedure?

Drive Line Shunt Pty Ltd has a number of vehicles for sale in its Parramatta workshops. Using the policy of ‘lower of cost and net realisable value’ how should these items be valued in the balance sheet? Stock itemCostNet realisable value Ford Falcon station wagon(s) 32,50040,000 VW surfing bus11,00012,850 Electric scooter1,900 2,800 Personal transporter3,200 4,500 The VW surfing bus needs work estimated at $2000 before it can be sold. sorry but its multiple choice qauestion and the answeres sugguested are A- 48450 b- 48600 c- 46600 d- 46800

Public Comments

1. With the exception of the VW bus, all items would be valued at "cost" because it's lower than the NRV. The VW bus w/b valued at $12,850 the NRV because that is lower than (11,000 + 2,000 = 13,000.) addtl info: answer would be $48,600. The work on the VW bus is assumed to be expensed and not added to the cost base.