PAS 2 Inventory - Cost of Inventories and Cost Formulas

Cost of inventory compromises of the following, except

• Cost of Purchase

• Cost of Conversion

• Other costs expensed in bringing inventories to present location and condition

• Other costs incurred in bringing inventories to present location and condition

Cost of purchase of inventories compromises the following, except

• Purchase price

• Freight

• Handling costs

• Export duties

Which of the following should be taken into account when determining the cost of inventory?

• Storage Cost of Part-Finished Goods

• Abnormal Freight In

• Recoverable Purchase Tax

• Interest on Inventory Loan

The cost of inventory shall be measured using

• FIFO

• Weighted Average Method

• LIFO

• Either FIFO or Weighted Average Method

The standard prohibits which of the following cost flow assumptions?

• LIFO

• Specific Identification

• Weighted Average

• FIFO

What amount should be reported as inventoriable cost of the purchase?

• 5,990,000

• 5,690,000

• 5,615,000

• 5,765,000

Using FIFO method, what is the cost of inventory?

• 100,500

• 120,000

• 125,000

• 125,500

Using Weighted Average method, what is the cost of inventory?

• 115,650

• 116,529

• 114,567

• 115,679

Using FIFO method, what is the cost of inventory?

• 160,500

• 162,750

• 163,200

• 163,000

Using Weighted Average method, what is the cost of inventory?

• 140,856.99

• 137,543.88

• 142,876.90

• 138,351.58