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Question - Formosan Company manufactures and sells paper envelopes. The stock of envelopes was included in the closing inventory on December 31, 2020 at a cost of P60 per pack. During the final audit, the auditors noted that the subsequent sale price for the inventory at January 15, 2021 was P50 per pack. Furthermore, inquiry reveals that during the physical stock take, a water leakage has created damage to the paper and glue. Accordingly, in the following week, the entity has spent P5 per pack for repairing and reapplying glue to the envelopes. Find the net realizable value and loss on inventory write down respectively amount?
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