How much is the cost of the obsolete inventories

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Problem - DNB Enterprise's closing inventories valued at cost RM600,000.

25% of these inventories were obsolete, the net realisable value of these inventories was estimated at RM120,000. The selling price of the remaining inventories were estimated at RM585,000.

Required -

(i) How much is the cost of the obsolete inventories?

(ii) Calculate the loss of the above obsolete inventories.

(iii) How much is the cost of the remaining inventories?

(iv) How much is the value of inventories to be recorded in the statement of ?nancial position?

(v) Explain your answer calculated above on the accounting treatment for inventories. Your answer should include the relevant accounting principle applied in the valuation of inventories.

Reference no: EM132917468

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