Zoe Company has provided the following values for its 400 units of inventory at the end of 2014:
$\begin{array}{ll}
\underline{\text { Per Unit} } &\underline{ \text { Item }} \
\$ 65.00 & \text { Historical cost } \
\$ 54.20 & \text { Replacement cost } \
\$ 54.50 & \text { Net realizable value } \
\$ 35.80 & \text { Normal profit margir }
\end{array}$
Under IFRS requirements, the per-unit reported value for Zoe's inventory will be

Question

Zoe Company has provided the following values for its 400 units of inventory at the end of 2014: 
$\begin{array}{ll}
\underline{\text { Per Unit} } &\underline{ \text { Item }} \
\$ 65.00 & \text { Historical cost } \
\$ 54.20 & \text { Replacement cost } \
\$ 54.50 & \text { Net realizable value } \
\$ 35.80 & \text { Normal profit margir }
\end{array}$
 Under IFRS requirements, the per-unit reported value for Zoe's inventory will be

Quizplus · Accepted Answer

Under IFRS, the per-unit reported value for inventory is the lower of cost and net realizable value. In this case, the net realizable value is lower than the cost, so the per-unit reported value for Zoe's inventory will be $54.50.

Zoe Company Has Provided the Following Values for Its 400