Chater 8A Flashcards
1
Q
This refers to the net amount that an entity expects to realize from the sale of inventory in the ordinary course of business.
A
Net realizable value (NRV)
2
Q
This is normally the list price adjusted for any expected price concessions to be made when the inventory items are sold.
A
Estimated selling price
3
Q
These costs include costs which are directly related to the selling of inventory.
A
Costs to sell
4
Q
These costs are comprised by the direct materials and conversion costs needed to complete the work-in-process inventory.
A
Costs to complete
5
Q
What is the amount of NRV of raw materials and factory supplies?
A
Replacement cost
6
Q
If a purchase commitment is cancelable, can there be any loss to be recorded?
A
None since it is cancelable.
7
Q
A
