Inventory

Question 1

Cash discounts on purchase of raw inventory should be reported…

Answer 1

Deducted from inventory whether taken or not.

Question 2

How to calculate price index for Dollar Value LIFO layer?

Answer 2

End year cost/base year cost = price index, multiplied by current year base layer.

Question 3

Percentage of completion method includes a ratio of…

Answer 3

Percent complete to date and total estimated costs.

Question 4

What type of inventory is exempt from the lower of cost or net realizable value via IFRS

Answer 4

Biological (agricultural) products

Question 5

Which inventory cost method best approximates cost flow of a specific identification method in manufacturing.

Answer 5

FIFO.

Question 6

Which of these go into inventory: Freight in, warehouse.

Answer 6

Both. Warehouse is for goods is costs incurred waiting for goods to be sold.

Question 7

When should a loss be recognized under completed contract and percentage of completion?

Answer 7

Immediately for both.

Question 8

What is the ceiling for the lower of cost or market?

Answer 8

Net realizable value. This is the value if market and cost prices are above it.