The following are details of closing stock items in Aarvi Limited: Items Historical Cost (` in Lakh) Net Realizable Value (` in Lakh) (a) 30 27 (b) 15 18 (c) 35 35 (d) 40 45 The value of Closing Stock will be

Question

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According to the lower of cost or market rule, inventory should be reported at the lower of its historical cost or net realizable value (NRV). For item (a), use 27 lakh (lower of 30 and 27), for (b) use 15 lakh (lower of 15 and 18), for (c) use 35 lakh (both are the same), and for (d) use 40 lakh (lower of 40 and 45). Adding these together gives 27 + 15 + 35 + 40 = 117 lakh.

The Following Are Details of Closing Stock Items in Aarvi