MGT401

Financial Accounting II
Assignment #01
Due date 8th December, 2020 Marks: 10

Question # 01
From the following information of a company you are required to calculate the NRV of the
inventory and answer the questions mentioned in requirement.

 Partially completed inventory item at the year end.

 Expected selling price of the item when completed is Rs. 2,600.
 A further cost of Rs. 500 is required to complete the item
 Expected selling cost of the item is Rs. 100

Required:
1. What will be the carrying value of the inventory item if the cost incurred to date is
Rs. 1,000?
2. What will be the carrying value of the inventory item if the cost incurred to date is
Rs. 4,500?

Question # 2
Keeping in mind the disclosure requirements of IAS 02, you are required to enlist the methods of
stock valuation.

Important Note:
To open the assignment file, you must have Adobe Acrobat Reader/ PDF Reader
installed on your computer.

For acquiring the relevant knowledge, do not rely only on handouts but watch the
course video lectures and read additional material available online or in any other mode.
 Note related to load shedding: Please be proactive

Dear students,
As you know that semester activities have started and load shedding problem is also
prevailing in our country. Keeping in view the fact, you all are advised to post your
activities as early as possible without waiting for the due date. For your convenience;
activity schedule has already been uploaded on VULMS for the current semester,
therefore no excuse will be entertained after due date of assignments, quizzes and
GDBs.