1. In which of the following situations is the net realizable value of a line of inventory likely to be greater than cost?
2. According to the standard on Inventory, some costs should not be included within the inventory valuation.
Which of the following costs may be included?
3. According to IAS 2 Inventories, which of the following costs should be included in valuing the inventories of a manufacturing company?
1. Carriage inwards
2. Carriage outwards
3. Depreciation of factory machine
4. General administrative overheads
4. Which of the following statements about inventory valuation for Statement of Financial Position purposes are correct?
1. According to IAS Inventories, average cost and FIFO (first in and first out) are both acceptable methods of arriving at the cost of inventories.
2. Inventories of finished goods may be valued at labour and materials cost only, without including overheads.
3. Inventories should be valued at the lowest of cost, NRV and replacement cost.
4. It may be acceptable for inventories to be valued at selling price less estimated profit margin.
5. At what amount is a biological asset measured on initial recognition in accordance with IAS 41 Agriculture?
6. Which of the following is NOT the outcome of a biological transformation according to IAS 41?
7. In preparing financial statements for the year ended 31 March 2019, the inventory count was carried out on 4 April 2019. The value of inventory counted was $24 million. Between 31 March and 4 April goods with a cost of $1.9 million were received into inventory and sales of $6 million were made at a mark-up on cost of 25%.
Select at what amount inventory should be stated in the statement of financial position as at 31 March 2019?