Page 58 - MAC4861_2 Costing Class Slides Part 1
P. 58
TEST 3 - COSTING
The valuation of inventory in terms of IAS 2
• Units in closing inventory are valued at R10 per unit which
must be written down:
= 2 000 units x R0.48 per unit = R960
Dr Cost of sales 960
Cr Inventory 960
• This adjustment is only made to units still in stock at year
end (as this inventory is overstated). The variance relating
to units sold has already been expensed.
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