Lesson 7 Cost Of Inventory

Question 1

Merchandise costing 90k shipped FOB shipping point on December 30 from a vendor means

Answer 1

It should be included in our inventory because as soon as it ships we own it

Question 2

Under IFRS inventory is valued at ?

Answer 2

Lower of cost or net realizable value

Question 3

Cost of goods sold is

Answer 3

Sales - profit margin

Question 4

How to find Cost of goods sold

Answer 4

BI
+ purchases
- ending Inv
= COGS