The closing inventory at cost of a company at 31 January 2003 amounted to $284,700.
The following items were included at cost in the total:
(1) 400 coats, which had cost $80 each and normally sold for $150 each. Owing to a defect in manufacture, they
were all sold after the balance sheet date at 50% of their normal price. Selling expenses amounted to 5% of the
proceeds.
(2) 800 skirts, which had cost $20 each. These too were found to be defective. Remedial work in February 2003
cost $5 per skirt, and selling expenses for the batch totalled $800. They were sold for $28 each.
What should the inventory value be according to IAS 2 Inventories after considering the above items?
A $281,200
B $282,800
C $329,200
D None of these.

A 284,700 – (32,000 – 28,500) = 281,200