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Question - Included in the closing inventory at 31 December 2021 of RM 168,000 are inventory items Kayz brought forward from prior year which are remained unsold. Items Kayz were carried at their net realizable value of RM30,000. The original cost of inventory items Kayz was RM35,000. As at 31 December 2021, there was a sudden increase in demand for inventory items Kayz and it was estimated that these items could be sold for RM36,500. There is also a transfer from Investment Property to Inventory amounted to RM250,000.
Required - How to calculate the closing inventory to be recorded in Statement of Financial Position and which amount should be deducted with Cost of Sales?
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