A company has a year-end of 31 December. Its inventory records on that date showed an inventory of 600 units with a cost of $10 each. A fire on 31 December had totally destroyed 100 units and caused a further 50 units to be damaged. These would cost $7 each to be repaired. The inventory records had not been adjusted for the fire. The selling price is $15 per unit. What is the value of the inventory to be used in the financial statements at 31 December?

Source: February/March 2018 - Paper 12 · 9 · 2018