15. ABC Plc manufactures and sells paper envelopes. The stock of envelopes was included in the closing inventory as of December 31, 2021, at a cost of GHS50 each per pack. During the final audit, the auditors noted that the subsequent sale price for the inventory at January 15, 2022, was GHS40 each per pack. Furthermore, inquiry reveals that during the physical stock take, a water leakage has created damages to the paper and the glue. Accordingly, in the following week, ABC Plc spent a total of GHS15 per pack for repairing and reapplying glue to the envelopes. The net realizable value and inventory write-down (loss) amount to (a) GHS40 and GHS10 respectively. (b) GHS45 and GHS10 respectively. (c) GHS25 and GHS25 respectively. (d) GHS35 and GHS25 respectively. (e) GHS30 and GHS15 respectively.

15. ABC Plc manufactures and sells paper envelopes. The stock of envelopes was included in the closing inventory as of December 31, 2021, at a cost of GHS50 each per pack. During the final audit, the auditors noted that the subsequent sale price for the inventory at January 15, 2022, was GHS40 each per pack. Furthermore, inquiry reveals that during the physical stock take, a water leakage has created damages to the paper and the glue. Accordingly, in the following week, ABC Plc spent a total of GHS15 per pack for repairing and reapplying glue to the envelopes. The net realizable value and inventory write-down (loss) amount to (a) GHS40 and GHS10 respectively. (b) GHS45 and GHS10 respectively. (c) GHS25 and GHS25 respectively. (d) GHS35 and GHS25 respectively. (e) GHS30 and GHS15 respectively.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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