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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 鈥榣ower of cost and net realisable value鈥?how should these items be valued in the balance sheet?

Stock item Cost Net realisable value
Ford Falcon station wagon (s) 32,500 40,000
VW surfing bus 11,000 12,850
Electric scooter 1,900 2,800
Personal transporter 3,200 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

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.

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