based on IFRS. 1. A company incurred the following costs related to the production of inventory in current year: $100,000 60,000 30.000 Cost of materials.... Cost of direct labor. Allocation of variable overhead costs... Allocation of fixed overhead costs (based on normal production levels)....... Storage costs (after production, prior to sale) Selling costs... 25.000 2.000 8,000 The cost of materials included abnormal waste of $10,000. What is the cost of inven- tory in the current year? a. $190,000 b. $205,000 c. $215,000 d. $217,000 2. A company determined the following values for its inventory as of the end of its fiscal year: Historical cost Current replacement cost Net realizable value Net realizable value less a normal profit margin. Fair value $50,000 35.000 45.000 40,000 48.000 What amount should the company report for inventory on its balance sheet? a. $35,000 b. $40,000 c. $45,000 d. $48.000 unting policy for measury