Stock of items P, Q, R have cost ₹38L, ₹29L, ₹17L and NRV ₹42L, ₹29L, ₹14L. Closing stock value:
A₹84 lakhs aggregate
B₹83 lakhs aggregate
C₹85 lakhs aggregate
D₹81 lakhs aggregate
Answer & Solution
Correct answer: D. ₹81 lakhs aggregate
1. Apply lower of cost or NRV item by item.
2. P: min(38,42)=38; Q: min(29,29)=29; R: min(17,14)=14.
3. Total = 38 + 29 + 14 = ₹81 lakhs.
_Source: ICAI BoS Foundation Paper 1, Ch 4 "Inventories", Illustration 1_
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