CA Sri Lanka Corporate Level Exam

Practice session

At the reporting date, Colombo Industrial Products holds 500 units of specialized machinery parts with an original production cost of LKR 2,400 each. Due to technological changes, the estimated selling price per unit is LKR 2,500. However, the company must incur rectification costs of LKR 300 per unit and sales commission of LKR 100 per unit to sell them. Under LKAS 2, at what total value should this inventory be presented in the statement of financial position?

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