Q4 Just Jeans Ltd is a clothing retailer. Which of the following costs would it record as a cost of purchase? Select the correct options, and then click Submit Costs to ship the jeans from a supplier to the warehouse Costs to ship the jeans from the warehouse to a retail store Reimbursable import duties from a taxing authority Storage costs of the jeans while in transit to the warehouse Salary of the purchasing manager in the accounts department Q5 The UK subsidiary of YeastFeast & Co measures raw material inventory using the FIFO method. The French subsidiary of YeastFeast & Co measures the same raw material inventory using the weighted average cost method. Is this permitted under IAS 2? Select the correct option, and then click Submit. No. Costs formulae should be consistently applied to all inventories similar in nature. Yes. Different cost formulae can be applied to inventory nature as long as the methods used are either FIFO or the weighted average cost. Q6 in which of the following circumstances would an inventory write down be recognized or reversed? Select the correct options, and then click Submit. When inventory is damaged or has become obsolete and can no longer be used When prices of specific raw materials have declined but the prices of the related finished product remain above its cost to complete When the selling price less the selling costs of a finished product (NRV) is less than its carrying value When, at year-end, a company anticipates that market prices will recover for inventory that is currently carried at net realizable value None of the above