Question No. 2
Furniture Point is the renowned name in the furniture market. They are dealing in five major wooden components of furniture i.e. sofas, bed sets, dressing tables, dining tables and wardrobes. At 31st December, 2010 the inventory in hand was as follows:
Items
Quantity
(Units)
Cost per UnitRs. (000)
NRV per Unit Rs. (000)
Sofa Set
100
85
98
Dinning Table
150
120
105
Bed
200
150
180
Dressing Table
400
60
55
Wardrobe
450
75
70
Required: Calculate the value of inventory as on December 31, 2010 under IAS 2 – Inventory. Also pass necessary adjusting entries in this regard, if required.