Tonnellerie Sablière keeps in inventory oak barrels that cost it 30,000. Overproduction had led to carrying them at 21,000 at the previous year-end. This year, a shortage of stave wood drives prices up and the net realisable value of the barrels reaches 34,000. Record the effect of this development at the year-end.
- Cost of the barrels
- 30,000
- Carrying amount at the previous year-end
- 21,000
- Net realisable value at the year-end
- 34,000