The following information relates to product code PTL99:
Cost $11.00
Expected selling price $15.50
Marketing & delivery cost $1.20
Replacement cost $12.30
The net realisable value (NRV) of product code PTL99 is:
The net realisable value (NRV) of a product is the estimated selling price in the normal course of business, less the estimated costs of completion and selling expenses. In this case, the expected selling price is $15.50, and the additional marketing and delivery cost is $1.20. Therefore, to calculate the NRV, we subtract these costs from the expected selling price:
NRV = Expected Selling Price - Marketing & Delivery Cost NRV = $15.50 - $1.20 NRV = $14.30
So, the net realisable value of product code PTL99 is $14.30.
