INVENTORIES (Q4)

Question 1

TYPES INVENTORIES

Answer 1

PERPETUAL INV SYSTEM
PERIODIC INV SYSTEM

Question 2

IS THE ITEM CLASSIFY AS ASSET OR NOT

Answer 2

-THE (X) ARE ASSET
-HELD TO BE SOLD IN THE ORDINARY COURSE OF THE COMPANY’S BUSINESS (WHAT KIND OF BUSINESS)
-IN THE PROCESS OF PRODUCTION FOR SUCH SALE OR IN FORM OF materials/supplies TO BE CONSUMED IN THE production process/services

Question 3

cost should be excluded

Answer 3

all selling costs
cost relate to purchase
abnormal amount of wasted material,labour and production