Exercise 1

A companys inventory values are as follows:

Inventory Item	Quantity	Cost per unit - N	Net Realisable Value per unit -
Part A1	100	12.50	10.75
Part B2	50	8.30	11.00
Part C3	350	25.30	35.80

Calculate the correct value that the inventory should have in accordance with IAS 2 Inventories.

Exercise 2 A companys inventory values are as follows:

Inventory Item	Quantity	Cost per unit -	Net Realisable Value per unit -
Part M1	20	8.00	7.00
Part M2	60	12.00	10.00
Part M3	10	14.00	16.00

Calculate the correct value that the inventory should have in accordance with IAS 2 Inventories.

Topic 2: Accounting for Inventory

Exercise 4 During the month of March 2021, a company had the following movements in a certain type of inventory item:

1 March	Opening inventory of 100 units at a cost of 40.00 each
10 March	Bought 150 units at a cost of 35.00 each
15 March	Issued 80 units to production
20 March	Bought 50 units at a cost of 38.00 each

25 March Issued 100 units to production

Show how inventory records would appear under the FIFO and AVCO methods.