PSAK 202: Inventory

What is the main principle for measuring inventory according to PSAK 202?

• Historical cost

• Current market value

• The higher of cost and fair value

• The lower of cost and net realizable value

Which of the following costs should not be included in inventory costs under PSAK 202?

• Warehouse costs

• Direct labor costs

• Distribution costs to customers

• Factory overhead costs

A company has inventory with a cost of Rp50,000 per unit. The estimated selling price is Rp55,000, with completion and selling costs of Rp7,000. Calculate the NRV and determine the value used to recognize the inventory.

• 48,000

• 58,000

• 38,000

• 50,000

Inventory write-downs can be reversed if:

• The market selling price increases

• Production costs decrease

• The goods have been sold

• Management expects the price to increase

Beginning inventory = Rp120 million Purchases during the year = Rp300 million Ending inventory = Rp100 million Calculate COGS using the periodic method.

• 425,000

• 400,000

• 325,000

• 300,000

The following components are included in inventory costs according to PSAK 202, except:

• Purchase costs of raw materials

• Direct labor costs

• Manufacturing overhead costs

• Distribution costs to customers

The difference between cost and NRV that causes a decrease in inventory value is recorded as:

• Reduction in equity

• Expense on the income statement

• Adjustment to accounts receivable

• Deferred tax expense

Fixed manufacturing overhead costs are allocated to inventory based on

• Total units produced

• Normal capacity

• Actual production

• Company policy

Net Realizable Value (NRV) is defined as:

• Current purchase price

• Selling price less all completion and selling costs

• Future discounted value

• Historical cost less depreciation

The following information is needed to calculate COGS in a periodic system, except:

• Beginning inventory

• Net purchases

• Ending inventory

• Labor costs