IAS inventories to be valued at the lower of cost and net realization value . Cost include all expenditure incurred in bringing the item to their present location and condition Which of the following is not normally be included as part of the cost inventory in a manufacturing by ?

I) Cost of transporting finished goods to customers premises

II) Storage costs for a raw materials , stored at the premises of a third party

III) Discount allowed for prompt payment by customers

IV) Discount received for Bulk purchases

A) ii and iv only B) iii only C) I and iii only D) I and IV only

The following costs relate to a unit of goods Cost of raw materials $1, Direct labour $0.50 During the year $60 000 of produced during the year which is lower than the normal level of 10,000 units . This was a result of a fault with some machinery which resulted in 2,000 units having to be scrapped . At the year end , 700 units are closing inventory What is the value of closing inventory ?

Posh plc has the following units inventory at the end of 20x 9

	Units	Cost Per Unit
Raw Materials	5,000	25
Finished goods	2,000	30
Working In Progress	1,000	35

Finished items usually sell for $50 per unit. However, water damage caused by improper storage of inventory will mean 300 units of finished goods will be sold at 60% of the normal selling priceless costs to sell of $5 per item. A further $5.50 per unit is still to be incurred to finish off the items of work in progress.

in accordance with IAs 2 Inventories , at what amount should inventoeries be stated in the statement of finacial position of Posh plc at the end of 20X9