6- An item of inventory was purchased for SR5. It is expected to be sold for SR7, but the company needs to spend SR3 on the item in order to achieve the sale. To replace the same item of inventory would cost SR6. At what value should this item of inventory be included in the financial statements? a) SR5 b) SR7 c) SR6 d) SR4 7. If ending inventory is overvalued: a) Assets are overstated in the statement of financial position. b) Assets are understated in the statement of financial position. c) Profit is understated in the statement of profit or loss (as cost of sales is too high). d) There is no impact on either statement of financial position or statement of profit or loss. 8- DDLH, CO applies FIFO, and it reports the following data for its inventory: What is the value of the ending inventory? a) SR100=(100+400490)SR10 b) SR80=(100+400490)SR8 c) SR180=(100+400490)(SR8+SR10) d) SR20 SR80 =(100+400490)(SR10SR8)