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Jones Company's inventory cost is $100. The expected sales price is $110, estimated selling costs are $12. Consistent with the lower of cost and net realizable value approach, this inventory item should be valued at

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Answer:

inventory item should be valued at $98.00

Explanation:

IAS 2 required inventory to be carried at the  lower of cost and net realizable value.

Net Realisable Value is estimated selling price of inventory - Cost to sell

Net Realisable Value = ($110 - $12) = $98.00

Cost                                                   = $100.00

The lower is NRV

Therefore the cost is $98.00

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