The following information relates to product J:
The net realisable value (NRV) of product J is
A) $11.10.
B) $12.50.
C) $9.50.
D) $13.90.

Question

The following information relates to product J:
 The net realisable value (NRV) of product J is
A) $11.10. 
B) $12.50. 
C) $9.50. 
D) $13.90.

Quizplus · Accepted Answer

Net realisable value is defined as the estimated selling price in the ordinary course of business less, where applicable, estimated further costs to be incurred in completing, marketing, selling and distributing to customers. Therefore, NRV is $12.50 - $1.40 = $11.10.

The Following Information Relates to Product J