INVENTORY

Which of the following should not be taken into account when determining the cost of inventories?

• Storage cost of part-finished products

• Trade discounts

• Recoverable purchase taxes

• Import duties on shipping of inventory inward

Consigned goods shall be included in the consignor's inventory

• True

• False

• Depends

Under FOB Shipping Point, ownership is transferred upon shipment of the goods and therefore, the goods in transit are the property of the buyer.

• True

• False

A property developer must classify properties that it holds for sale in the ordinary course of business as

• Inventories

• Property, Plant and Equipment

• Investment Property

• Intangible Asset

Which is not an acceptable basis in measuring inventories?

• Historical cost

• Net realizable value

• Prime cost

• Fair value less cost to sell