Question

Note 3 – Inventory Abebio Limited is a retailer of Italian furniture and has five major...

Note 3 – Inventory
Abebio Limited is a retailer of Italian furniture and has five major product lines: sofas, dining tables, beds, closets, and lounge chairs. At December 31, 2019, quantity on hand, cost per unit, and net realizable value (NRV) per unit of the product lines are as follows:
Required:
Product line
Sofas
Dining tables Bed
Closets Lounge chairs
Quantity on hand
100
200
300
400
500
Cost per unit
GHS 1,000 500 1,500 750 250
NRV per unit
GHS 1,020 450 1,600 770 200
Compute the valuation of the inventory of Abebio Limited at December 31, 2019, under IAS 2 using the “lower of cost and NRV” principle.

NB: Show Workings

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